Construction Partners (ROAD) 11 Dec 202020 Q4 Earnings call transcript

Company Profile

Participants

Rick Black	Investor Relations
Charles Owens	Chief Executive Officer
Jule Smith	Chief Operating Officer
Alan Palmer	Chief Financial Officer
Ned Fleming	Executive Chairman
Andrew Wittmann	Baird
Josh Wilson	Raymond James
Michael Feniger	Bank of America
Stanley Elliott	Stifel
Adam Thalhimer	Thompson Davis
Brent Thielman	D.A. Davidson

Call transcript

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Operator

Greetings and welcome to the Construction Partners’ Fourth Quarter Fiscal Year 2020 Results Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Rick Black, Investor Relations for Construction Partners. Thank you.

begin. may You

Rick Black

audio is and us operator review everyone. through XXXX. appreciate section This Presentations as We Relations on the constructionpartners.net. quarter and of Thank speaks only Information the good Construction joining call results. XXXX for recorded fiscal to today, can page the being Events Partners the you webcast and you, year XX, of morning be link accessed also call December conference Investor fourth of and on call this

future be the are advised pursuant Litigation be discussion also today’s not statements the please made Harbor replay. date that So, that financial Safe Reform may forward-looking historical the including events performance any in would Act no accurate or facts, of considered Private to that statements time-sensitive are longer like act I expectations provision the you made information of or to XXXX. remind as Securities of statements of or any future

We would company’s including disclosures turn forward-looking filings adjusted publicly statements the Owens. These our outside any of Partners over press at to Construction to Construction Securities the was morning found nature or earnings obligation control. by Commission. Reconciliations the refer part to will materially. Exchange in now EBITDA. refer be statements. and that as no Actual Partners’ other And to our in statements. release. with call to issued today, detail nearest measures assumes press Management are and of Charles I Charles? forward-looking and can company’s the as revise uncertainties GAAP like that non-GAAP Please of for risks earnings making the end to may the the CEO, today’s be on update measures their differ uncertain forward-looking release call results factors this as well are described will

Charles Owens

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

our with and results pleased effective and primarily vertically of cost These fuel. are fiscal productivity lower crews utilization project equipment, by and of strong integrated profitability. building, XXXX synergies driven We were disciplined

in faced extremely pandemic, our people XXXX focused global I response challenges during of from am and we organization’s proud the primarily the culture of this time While year. our

our XXXX, results. demand an see into pandemic, programs our great leadership organization employees strategy footprint, across repairs funding fiscal team, constant. where acquisitive our work and challenges, and deliver and geographic continuing As overcame remains is well-positioned adapted strength business, We during to for Heading organic execute year in essential managers while many on growth. our state the this and for road maintenance and

months, hot-mix company-wide. XX we asphalt plants we acquired plants have operate asphalt past the and XX Over XX now hot-mix

In addition, in could a infrastructure have we and we existing states bill future passed continue new funding adjacent our both many states opportunities. regarding remain From federal conversations, that to XXXX. a optimistic in get perspective, acquisition

the a to our safety our improve development. of focus for to that are We maintain infrastructure traveling confident country economic continue and be nation’s and the public will primary

external positive Chief pleased over very with of Jule promotion months we factors, these Beyond Officer. past Smith the are with several the Operating transition the also to

and the COO. He the led nearly experience that Jule’s Jule becoming our As a a It now leadership, is acquisitions organization before Company is decade of taken lead and their CPI also integration positively and former has in impacting overseeing He continued owner, the our our are company. clear vision recent current operations. into development successful organization. executing day-to-day Smith subsidiary driving for a Fred effectively

for of backlog with XXXX, our coming indicates pleased outlook for strong current Finally, in growth year. on near-term which business, fiscal in are our the visibility based we the CPI

I’d Jule, us our strategy. approximately to to over hard successfully will leadership to employees team recent enables I and their execute call like the about talk our Jule Jule? turn on work and X,XXX commitment, comment acquisitions now that operations. turning and to dedication to call over to our for thank Before the

Jule Smith

Good of our Charles. year we you, morning, hard their Thank The great everyone. and safe fiscal in to markets for want work our business doing employees their to I are across with of our thank finished operations And well. staying dedication project productivity work. states. all our

significant to through the of essential manage effectiveness an The and continued have day-to-day have our helped in we safety challenges operations. pandemic-related As without us the delays. of our flexibility COVID-XX business, operate the our to pandemic employees protocols

demand potential Now, the let’s demand for We comprise road that flat. returning In XXXX at where has services. Georgia North side projects business. the DOT of has as in maintenance past, lettings repair normal our a its the issues and discussed upside stabilizing. in we spending to are public infrastructure currently states in remain view a Overall, the look we operate, to budgets relatively gas spending Carolina, our strong State and and remains North resumed project the take tax is Alabama and for overcome and funding collections in Carolina program. expect Florida, we and now the while currently

spent bidding requires states be addition, throughout budget infrastructure. project current DOT new of maintenance private high and In to on not our see or we their in passed percentage constant a state the that remained the on pullback market. downward a pressure do work of currently has Commercial law the

hot-mix several strategic And with potential asphalt three some continue in North Carolina, we provided and In and expanding footprint like concentration the state completed plants, markets. operate. I XX mentioned, conversation also adding have with update X past the acquisitions our acquired of Charles we acquisitions. as candidates. to hot-mix In to existing oriented we months, parts by in throughout we adjacent the are an would we Lastly, market currently where fiscal in the asphalt plants pleased on have very the synergies provide Florida, further our states acquisition growth in states XXXX

Alan engaging results. actively is and now our would over to turn discuss fit identifying team with growth with I leadership well companies the that on financial to working future to our plans. call like Our

Alan Palmer

you, Thank to Compared performance was $XXX.X profit results. want morning our last metrics Gross $XXX.X million million the by up XXXX revenue XX $XX.X start good million, in Jule X.X%. key million, fiscal highlighting points. was compared income was everyone. to the XXXX, $XX.X year. I to fiscal Net basis and

points. X.X% Our adjusted $XX.X adjusted XX.X%, up margin EBITDA our EBITDA million, basis XX up was was and

Although the pandemic everyone, protocols. adapted have necessary for we challenging to been has

all while our grow Our managers, support business, did crews a continued and company to job we work, maintain managing margins. our corporate of great and

on half through year managed line second the less high also downward resulted occur book from that revenue, year. burn half the in projects each of in especially top revenue of second pressure We the typically that the and

margin. due usual cost liquid continuous than we and competitive at achieve weeks was profitability Importantly, to hurricanes aggressive, states a our detriment weather-related diesel higher of we we we our terminal. the increased the from pricing where maintained storms a rather line of the fourth while bidding experienced last the lower operate. trying delays quite to benefited work quarter, few and in to at revenue focus a the perspective while asphalt environment project during than In margin also quarter, From

subcontract use during the less to self-perform out overtime also we cost. crews increased own experienced we quarter, with our and do where We work typically our work

solid to led factors these margins that of expanded year-over-year. All

we facility September credit. balance of of million sheet our million credit outstanding existing to now and at availability of Turning $XXX.X the reduction $XX.X the XX, for had under cash revolving after letters

XXXX to environment EBITDA XX quarter, end As allowing fiscal be debt ended to $XXX.X of million, the September the three September million of in $XX.X year excluding This backlog for expenditures flexibility to will include provided XXXX. months by provides year million XX, and Cash $XX.X potential financial provides liquidity leases. trailing previously uncertain was for XX backlog the the fiscal compared XXXX period first September months acquisitions. XX, at Project operating subject does for expenditures growth $XXX.X of the Capital our million of economic $XXX.X us for arise. backlog future respond in Approximately, ratio they XXXX today’s this to to capital million completed X.XX. any opportunities fiscal compared recent XX% This quickly quarter activities the not the for $XX.X was same XXXX. acquisitions in operating XX, purchase was last equipment year. of million at to when to were

in challenges and revenue million XXXX we results adjusted approximately call income organic increase XXXX fiscal to EBITDA despite year In now resilience this half billion, project Chairman, million, revenue XXXX. acquisitions We turn pleased rapid many forward organization’s $XXX the to now Ned Turning our million of Fleming. with outlook fiscal will from coming XXXX, as look to summary, faced Ned? of year over from revenue and in we $X grow new of $XXX to million. increase the fiscal to our responses half $XX.X the XXXX are to we company. to world. I the the for continue is and the of fiscal Executive Approximately, of in $XXX to $XX growth plan comes for million net we

Ned Fleming

Alan. you, Thank

growth continued the open presented leaders, like all performance outstanding question, all the employees team backlog to and I while at to to building CPI. business a by your the few the adapted would The our to profitability, we for for the comments and call manage about XXXX Before managers of make and successfully simultaneously XXXX. challenges

recent as In premier industry. a the consolidator strategic addition, in focus demonstrate continued the fragmented acquisitions CPI’s very

company we opportunity experience and in and within move are we in both continued to than with is about our are X continue the and positioned growth. history. confident possibly XXXX, financially. vision company to moves our role. to new our And COO any is As transition consolidation states our Jule’s company’s are for leadership, at states. now the The CPI invaluable His well organizationally The brighter future to pleased operational and are into essential to point very and the consolidate organization

growth Operator? line strategy. proceed now bullish first With of is question this the live. by Our with outlook, your opportunities Please we Andrew Baird. proven Wittmann with Thank Mr. [Operator questions. you. will your evidenced organic from that, we also are line Instructions] with As extremely Wittmann, the comes XXXX about question. take

Andrew Wittmann

my apologize that. for taking morning. guys and questions, for Thanks I good

Charles Owens

morning. Good

Andrew Wittmann

of the play really, going guess bit, the great. kind a a wanted I here. profit were dumb but little am to we really what but expected, couple of just light margins revenues these ask of I to questions were I

resides? that over doing of You more like one were, with guys maybe perform of kind prices it really self good time, performance self lower diesel that second my question self-perform. less the they whatever And keep I including maybe suggests as you should guess where about greater and as talked you margins of did,

was that if benefit again, the you not that? So, a do never in talk past, just much can to, that about how not to you in and do the company’s continue quarter been you the choose why has if of can strategy which

Charles Owens

of own Yes, in try year markets, to then Typically, the crews Andy, those year, and surges did can second summer, for the chose have self-perform. we you because work as fourth you but some we utilize months, we staff equipment the XX more your this the some crews where to work to as our much our than in not and typically often of got on quarter, have would do. half in do to third we projects have of

staff round just use work got We and don’t to stable year for to and And we that workforce. of we laying not to so we subcontractors do efficient all peaks find off don’t some want people. – hiring be have a and generally it’s we

not in that of very the work, have work that being work markets, of we the the do their also because this working. we to year full margin So, hours be had get of lower to to year our weeks, to that that was that North specific in permanent we volume are not X in a working just volume. of first the able their not to seasonality of that people efficient you you have whatever that, do lot being of work in have the just chose Carolina number when when do in subcontractors subcontracted And some some it, we lower capture really we months got be crews a profit with because but it’s

Andrew Wittmann

sense. I had be knew makes That explanation. there an to

of inclusion particular deals growth, that organic publicly that. I here question. revenue I heard I is ask portion at follow-up announced was that for for you been half acquisitions the and the is yet half thank that my there the only guidance if from to if you this publicly guidance So, to guidance of was or includes in the wanted about But we other guess of that have the wondering the announced acquisitions. growth then ‘XX maybe specific acquisitions year-over-year any been not have in point? clearly

Charles Owens

question. whether it’s guidance always in pattern updated the have say good year we we time we the point of basic the mean, or of provide guidance Yes, the that in guidance our or to the midpoint at our as the followed that going to of I burn. That’s when include for any far far and also are what are that we book guidance. know things be as markets we what going and our we backlog as see we in future for as beginning

we side either from upside organic already what markets think acquisitions year’s that we in, this acquisitions the XX:XX anticipate we guidance, take of revenue the higher was growth. you if So, on or the that lower be guidance, quite that than or currently to growth markets the the higher would are guidance, Greenfields, don’t the organic other organic we have they The made will. that downside, growth get the applies

are any that one Greenfields for talked the anticipated upside, they acquisitions of but higher levers no could we growth into on us than acquisitions the or about push unknown built that organic basic the So, to upside. guidance, growth three

Andrew Wittmann

guys. helpful. good Thanks, that’s Have Okay, day. a

Charles Owens

Andy. you, Thank

Operator

you. Thank

from question. line Josh with Raymond Our the James. your next Please comes Wilson question with of proceed

Josh Wilson

on morning, Good Thanks. Congrats gentlemen. quarter. the

Charles Owens

you. Thank

Josh Wilson

of items for also me front. acquisition on the Couple

were quarter just First, the could in you September quantify acquired what reported? the sales you

Charles Owens

million, think was million it $XX.X through approximately been $XX.X it’s through excuse – It September, I would me and it’s through million $XX.X as now $XX million. June have

Josh Wilson

might which more about pressured been that as a new higher then we and both average Carolina, that more what for are is acquisitions volume has fleet the your perspective, that the contribution they be market ultimate guidance, they assume reflected be below EBITDA maybe margin think might And the depressed these we of ‘XX from contribution expectations should than their in that given businesses in from a and because are environment? North

Charles Owens

question. the the as and both all that ground people good just made, guidance a put we the it’s XX our we that build together. up new mean, I Smith companies at management I the every acquisitions have in Yes. mean, we time, say at from those markets, Fred

XX The for projects DOT that’s not As been a you tight know, months. really North in let very recalls any Carolina, here did resurfacing market. the last

and have acquired acquisitions those September So that gets and taken remarks, putting back in existing seen our a in that we I see when – when whole state, more we together a when we just the to recover market, months, while those letting that them competitive and up, normal guidance. more about consideration it’s few not that numbers, we but back acquisitions, in that markets in in in work have in Jule but the think size so October normalized while those but some that our starting talked more on are spring being XX overall not some typically, his our jobs it’s backlog had the margin bid opens into that pipe first very

Josh Wilson

could I different one because just letting, if cadence squeeze letting given housekeeping Then are or of item to still is seasonality going expecting year be in differences? the the that more the normal this you XX:XX of

Charles Owens

No.

back a quarter but about This XX:XX, to it currently budget year stands XX:XX. wise was the more current it cadence. just on year, return is Our as target XX:XX should with next

Josh Wilson

will queue. Thanks. get back in I

Charles Owens

Thank you.

Operator

you. Thank

Bank of with proceed Michael Our question. your comes line next of the America. Feniger question from with Please

Michael Feniger

my questions. Hey, guys. taking Thank you for

down the back breakdown year acquisition then some margin of just of there we seeing I like XXXX XXXX what you it get bit a the XXXX. out? have subcontracting guys you reasons? mixing are sure Just see for of you had buckets and of of Is could was Is but bit referring am hoping great the little feel conservatism, the come down it big are guidance Is buckets margin in you why margins. in the prices? decline is breakdown great diesel a in kind margins a to of obviously I the of the a XXXX? was kind it a hoping kind of guide a of Why we more

Charles Owens

that and little way I Michael. gave the of to the from of rise. a like when tailwind actually it since we as tailwind and we But beginning question, diesel so of bit from our then that. of that good from fourth not and significant, quarter, say it primarily a QX at a and in And petroleum we that in have we end a original and said said, of we we year, end in dropping it mean, I XXXX, but the bit liquid seen liquid for fourth increase asphalt. a to prices. our the quarter diesel the updated Yes, had little were third prices in full in is crude. that products, dropped XXXX, benefited of significant stopped is the guidance or revised September out have in put dropping It’s bit have see year benefited XXXX, quarter, starting The we price rise in our guidance, we it’s we this have little price much

change. have diesel We up. the asphalt with seen that’s up, already that see We coming online going to vaccines our our don��t prices going liquid prices going

and headwind. a is we we have got little while always those calls pass indexes, So, there lot along of a

yes, there, probably XX take we tailwind points are the year the next tailwind we margin. headwind the or of So, XX to the in going lack had amount basis and if this year, you have to

what’s little do be percentage we when to bit always that is a we historically, there are large of as higher generally then North in, that we some of headwind. part have that we the and through. And difference that little That’s with have tailwind Carolina, these of and the certainly going margin this the little bit doing get then between a having margin work said, of that’s and that to are volumes, mentioned that we are of going of work, earlier someone fact the we don’t to a acquisitions subcontractors that’s that. come a that we the year higher do the got just where that dynamics to had part like in same particular have got bit So, subcontracting that margin profile

Michael Feniger

it. you seems what got side, And some assuming hopeful on that there consensus Yes, kind what the are the talk that on are XX before, kind guys this like for year, guys mean, next there side? you mentioned of can passed get I you of within about federal the federal hopefully hoping on is infrastructure you months

Charles Owens

has bipartisan there been a From federal discussions, conversation. been always as know, side, a you very

In on a the a increase. fact has put in XX% with proposal one increase the house side, Senate has the on table put basically, XX%

in receipts to operate expecting something to very count long come back that take strong. come something to taken could we will, in, is they happen areas to look but we confident are care And because kind forward economy seeing everything feel to in – and very take we get who has the will, that how even So, knows XXXX has though the the will get of, XXXX traffic the baked down, traffic we tax in again. the in are optimistic this of we been but has nothing deal going rolling it place

coming is hear receipts weakness lot country, when over but there So the you in that about markets of in. a the in all

something parties engine. it to that to it’s a And I and because is again. get there make the agree asset traveling a mechanism public rolling traveling there huge economy think a is that major So, both can our is And we economic sure safely out development of the is anticipate on. this country good

Michael Feniger

maybe states? were one I in, be guys If of pipeline. core I talking kind the mentioned expand guys you one you So, Makes would are out? looking to states? the that Thank guys your X you It about I could outside squeeze of you. flush last adjacent great of comments, just if you think those sense. and guys heard acquisition in could

Jule Smith

Yes.

within always We in having are and to in that our where to have we adjacent only continue the are footprint, currently we the conversations states are we in, in not Southeast currently. that but states

ongoing and those will that have. having we so And are continue are conversations we to

Charles Owens

Michael, is And Charles. this

in are having and markets things Just options markets, adjacent at we said exit looking footprint of the have in day like that just we is pleased have out adding and – the they that. Jule grown we and there, strategies out conversations excellent lot of had in But one conversations very other we issues the just in excellent candidates different opportunities. with we the but have for are we company companies to way And large there just this still family look have that we are like very a said as inside we opportunities and been of outside number with markets. and retirement there some – the some that plenty excellent these companies of are a

Operator

you. Thank

proceed question. line Our next Elliott from question with comes Please Stanley of with the your Stifel.

Stanley Elliott

taking question. morning the all for Hey, Thank everyone. you good

like You a things the year? what you that talked the to maybe And amount next than capacity, these if of sounds tax I to looking curious you activity maybe like family other look aggressive businesses changes be in are little more that, see options? that some would is be into fair it there at historically, could of a willing is and would going are at what if there codes fair then the potentially about M&A, you amount capacity on, of am

Charles Owens

have is said, plenty there we there as is opportunities. – of always Well,

up going are speed pace. We our to to try

lot TAC at management come team of integrate to of growth one we fully over to the each on doing all just going And and really And companies And in we counting our these to the the states the out IP one we get we and are seller this of these have take a because operate have of them. a not and are and control in. take and company goals company going we got as deals, what their that We opportunities. of the these they to great up the one handle their when employees growth is going profitable time one they very is that know our skis are we a as we thing of opportunities care they each it’s are acquisitions can they in that’s have their want that company. are in their and our and they how and deals, end know leave and

And out worked together all in targets to out come well always have for the time always to, talking sellers has because it’s they at good to that’s don’t us. why the very it’s be several same so, sometime interested there and –

and is our timing company is growth a to acquisitive so going and And a growth and our we we what going will to growth acquisitive by the normal and we we to is Greenfield don’t the is, that’s are when of growth part execute are and business right culture different grow very, than continue – see in growth anything strategy right. very go organic key

Alan Palmer

But when with X on their to as more close Charles of we company, those world, we In of I sell are is a sellers when X The of we in or said, would last, actually those I them. and ready we X are last Yes, XX Stanley, months. in ideal have being XX perfect X, made they days the XX determinant demonstrated the guess, made the that acquisitions I the can have close think four months. done X an this Alan. comment every to world,

capacity important plenty these they close it of any as and a one quickly one to sell Charles that’s time confidential And quickly have to to close can close keep preferred ready them those be there, that’s can to lot and are family-owned of makes the able because to. themselves. at businesses why when going and are very buyers present our when conversations on we opportunities We out flexibility we us they of to got if have said, ready we

Stanley Elliott

Great. numbers? be sooner new you we get that great? bill would do ‘XX, a in Is it first see Is your than months? Is highway to And quarter, first start half assume that? XX that do when Any hypothetically, it then XX of months? in let’s color the

Alan Palmer

have before mean, about delayed X use the taxes states not it’s from typically, our which if it’s have and last I but the in start years passed, states because time it’s from time when – enacted, the a you it’s maybe typically few letting generally enactment, they raised enacted, it the months projects.

Now, thing repair the and good projects. that maintenance projects early for are us the usually is

probably I So, and those say end quick But up would numbers, projects. on it are up X conservatively months. the usually it’s end front about those start before starts showing in revenue our

Stanley Elliott

you Happy Thank guys. holidays. very Perfect, much.

Alan Palmer

you. Thank

too. You

Charles Owens

Stanley. Thanks,

Operator

you. Thank

Davis. comes your question question. Thompson Adam line from Thalhimer proceed of Please with next Our with

Adam Thalhimer

Congrats quarter are construction broadly outlook. strong morning, guys. and Hey, start Hey, good seeing with what the you trends in states? kind private strong on of we can your

Jule Smith

and that seems economy our continue but we to bid markets monitor the of we Yes, the throughout to private to have markets a activity. our to Jule. lots lot closely, now, is And activity projects market this on. in see in of Adam, states continue right private strong

Adam Thalhimer

Does related Jule? or than seeing that’s are both, feel like commercial more in you it housing

Jule Smith

are Well, seeing both. we

rates, is low the I housing a clearly market, that. market but strong interest think, housing with the activity the commercial follows obviously, strong,

growth is a in a We warehouse of just shopping for industrial the warehouse just of seeing are there and also space lot projects demand online with development. lot

really several it’s different right So, things that market are the up private making now.

Charles Owens

can’t like so get we people goods are really with economy are the Jule driven get being the also and lot because to how these and areas, we that’s they says, where the of of people they in seeing southeast, not get both and there out to warehouses businesses part Adam, in things. a because quarantined wanting of relocation And are and look, changing enjoy is the places

built we where lot site, to a work may are that that that companies of an designed areas, of had accommodate of are what are and we the relocating open seeing this notices of in than year so. have norm a exception So offices can still more just become to more being going are people

Adam Thalhimer

good. Okay,

then I think cash about Alan, flow you, consistent. And one for that’s free XXXX I to cash expectations, wanted ask flow?

Alan Palmer

depreciation as as cutback me, our XXXX pandemic capital out. basically, amount capital as far a and in outlook Well, the our on as I expenditures cut Yes. we excuse hit – mean, expenditures substantial when far

than normally to points they about X.XX% CapEx is XX X.X% our got year, have basis typically revenue. X.XX% revenue, probably part ours maintenance bit CapEx about of our that make our not be to higher going of what their we be that, So, And to budgeted up. as will a higher that’s also up-to-date XX next or it’s is. for than due to catching fleet going It’s quite say be is acquisitions, little as We of normal. is we when

we up going want. have it to additional So what to are get expenditures capital kind of some we

with of those that treat we probably that we maintenance it’s we So, then CapEx. cut think some CapEx and tad are next of see out – on an revenue. that are the a growth for X%, as we acquisition, going in I year XXXX, be And of X% since around our just off have the even items, we we replacing that over organically over fact to held – that growth though our

the will CapEx XXXX total X% year. be overall right around So, for

Adam Thalhimer

swing might how pretty – organic idea that’s revenue working with capital and good Any growth? Okay.

Alan Palmer

Yes.

weather. weeks I before, we I timing is last the where year, have comments the think some we year, of out I have fiscal close inclement lot of of that when my said of that in mentioned our of a couple this year, As

when revenue your we cash should lot flow we quarter quarter. similar able what we terminal, last like ‘XX a that’s that think kind we we a the to have things inventory we that, short. at you of have It flow added – – us. had had behind the had and but had to of the when in and the in cash asphalt So, of been build the huge we your fall to is helps that where helps have operations that from I But really end be

doing have making getting we they job done kind during are timely think We that did very of should from payments, I gone were sure before ‘XX a pandemic, cash issues will XXXX the of great of ‘XX some paid have slowed have some DOTs strong and got said they through outsourcing a we that in flow some and but like operations the XXXX. we in we down because have us where in

Adam Thalhimer

Great.

Okay. Good Thanks, luck. guys.

Alan Palmer

Alright. Thank you.

Operator

Thank you.

proceed from next with the Brent your comes with D.A. line Davidson. Our Thielman question Please question. of

Brent Thielman

Great a Congrats thanks. quarter. finish Hey, the great year. on to

Alan Palmer

Brent. you, Thank

Charles Owens

Thank you, Brent.

Brent Thielman

Hey, Alan.

deals since of quarter. there You deals, and completed have for kind the of end a cash a get value the for you can debt of sense Is those guys trying the since pro provide forma anyway cumulative a couple to just September?

Alan Palmer

Well, to them. did acquire any we not debt incur

sufficient not to we did cash we had – do So, that.

to we goodwill. million of there was and no forma $XX spent so cash to speak then assets them. those quickly, EBITDA be million hard $XX from on I inventories, for And That in have the would been range that the trying And so of a down. for happens pro before the cash just think – our who in would to have debt gone would someone

Brent Thielman

Okay, how layer that the of top funding okay. you there? talked And what’s then still single-digit kind multiple on uncertainty in pandemic Carolina, able historically impacted have expectations to ranges how are of this deals mid range? upper I on out that’s going been about in the North to find you guys and wonder

Alan Palmer

value property, fair there of of on fair market we the us. top we their market get the plant owned changed is goodwill pay equipment. it on far in of value what kind I hasn’t the that as mean, as potential market We and based look by the really how companies. at We historicals appraisals bought and

changed. hasn’t during business is Carolina. a very X.Xx North well going it’s So, able some companies know purchase as backlog managers things they keep it and really in or manage XX% of pivot what’s EBITDA and their These in to run are that X.Xx multiple good going. how good trailing It affected cases the to the were mean, we I just are these still XX%, in even price on to being that pandemic, the really with goodwill. like total do by far economically not directly as about EBITDA trailing of

kind of of the And some so of taking big really because advantage weren’t situation. we downturn letting

same. So, really pretty the just much

Brent Thielman

anything you in Okay, sense strong so year market four here this is makes that Florida, been in just strong function okay. of there about, talked a more, more the that’s market, be it been they ‘XX, then to probably comment core flat a North markets fact Jule, Alabama, seems like that? really has a here one the in pickup that, XXXX. Is see And Carolina the the should might Georgia

Alan Palmer

we we are the look we at at it, in. when look markets Well, that

not the so ground from at that And seen. the saw it we the big may some got the And in you of are Georgia ones dollars have have we might have been ones looking that up.

So really as basing not what state the doing. are on we whole it is a

Georgia of going markets what profit and are are are day, those are we ones that in be to each us, markets seeing of what be the projects going particular to those comes up we of one at We seeing letting for those they centers, XX, in are flat. our those add to the and the end

do a are So, in. there number I and going – Georgia, that those know throughout not increase in in, don’t to be have the markets, state the but is what is we of in all huge throughout in seen differences I projects our know available

Brent Thielman

Okay.

Okay, I guys. Thanks, it. appreciate

Operator

the our floor will over turn concludes and Ladies back you. management Thank that final any session. remarks. I for to question-and-answer gentlemen,

Charles Owens

want those so everyone just give to much. on questions. excited thank to new want very This year. And thank Okay, just to your all and and prosperous you Charles. much safe those you for for a is you your thank we wish were And time just and you good I answers I patience and

Operator

This concludes Thank today’s conference. you.

this your may You your time. at lines disconnect Thank you for participation.

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