Q2 2024 Construction Partners Inc Earnings Call Transcript
Key Points
- Strong operational performance in Q2 led to growth in revenue, gross profits, adjusted EBITDA, and adjusted EBITDA margin.
- Backlog increased to $1.79 billion, reflecting strong demand for both public and private work.
- Benefited from elevated federal and state infrastructure funding and a healthy commercial market.
- Completed five strategic acquisitions, enhancing market share and expanding geographic coverage.
- Raised fiscal 2024 guidance due to positive performance and market conditions.
- Winter quarter is financially slower, requiring careful management and preparation for busier seasons.
- Some increase in backlog due to timing of state DOT lettings, which may not indicate continuous demand increase.
- Net loss for the quarter was $1.1 million, although improved from the previous year's loss of $5.5 million.
- Acquisitions, while strategic, involve inheriting backlogs that were not company-bid, potentially affecting short-term margins.
- Dependence on weather conditions for project execution, which can introduce variability in performance.
Greetings and welcome to the Construction Partners second quarter fiscal 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Rick Black with Investor Relations. Thank you. You may begin.
Thank you, operator, and good morning, everyone. We appreciate you joining us for the Construction Partners conference call to review second quarter results for fiscal 2024. This call is also being webcast and can be accessed through the audio link on the Events and Presentations page of the Investor Relations section of construction.partners.net.
Information recorded on this call speaks only as of today, May 10, 2024. Please be advised that any time-sensitive information may no longer be accurate as of the date of any replay listening or transcript reading.
I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future
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