struction Partners(ROAD) - 2021 Q2 - Quarterly Report

Financial Performance - For the three months ended March 31, 2021, the company reported a net loss of $4.935 million compared to a net income of $1.537 million for the same period in 2020[113]. - Revenues for the three months ended March 31, 2021, were $179.112 million, an increase from $168.679 million in the same period of 2020[113]. - Net income for the three months ended March 31, 2021 was a loss of $4.9 million, a decrease of $6.4 million compared to net income of $1.5 million for the same period in 2020[121]. - Revenues for the six months ended March 31, 2021 increased by $26.0 million, or 7.6%, to $370.0 million, including $27.1 million from acquisitions[125]. - Net income decreased by $4.1 million, or 58.0%, to $2.9 million for the six months ended March 31, 2021, compared to $7.0 million for the same period in 2020[132]. Adjusted EBITDA - Adjusted EBITDA for the three months ended March 31, 2021, was $10.998 million, with an Adjusted EBITDA margin of 6.1%, down from 8.5% in the same period of 2020[113]. - Adjusted EBITDA for the three months ended March 31, 2021 was $11.0 million, with an adjusted EBITDA margin of 6.1%, down from $14.3 million and 8.5% in the prior year[122]. - Adjusted EBITDA increased to $34.5 million with an Adjusted EBITDA Margin of 9.3% for the six months ended March 31, 2021, compared to $31.5 million and 9.2% for the same period in 2020[133]. Expenses - General and administrative expenses include costs related to operational and corporate offices, primarily salaries and personnel costs[107]. - General and administrative expenses for the three months ended March 31, 2021 increased by $7.7 million, or 45.5%, to $24.5 million, driven by legal settlements and increased payroll[116]. - General and administrative expenses for the six months ended March 31, 2021 rose by $10.6 million, or 31.3%, to $44.6 million, mainly due to legal settlements and increased personnel costs[127]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $2.4 million for the six months ended March 31, 2021, a significant decrease from $20.6 million for the same period in 2020[136]. - Cash used in investing activities was $110.5 million for the six months ended March 31, 2021, compared to $62.9 million for the same period in 2020, with $84.5 million related to acquisitions[139]. - Cash used in financing activities was $6.5 million for the six months ended March 31, 2021, primarily for the repayment of principal on long-term debt[141]. - Capital expenditures for the six months ended March 31, 2021, were $26.9 million, down from $34.5 million for the same period in 2020, with expected total capital expenditures for fiscal 2021 projected between $47.0 million and $52.0 million[148]. Debt and Financial Ratios - As of March 31, 2021, the company had $86.4 million of principal outstanding under the Term Loan and $0.0 million under the Revolving Credit Facility[143]. - The company had a fixed charge coverage ratio of 2.93-to-1.00 and a consolidated leverage ratio of 1.00-to-1.00 as of March 31, 2021[145]. Legal and Regulatory - The company reported a legal settlement of $3.2 million, impacting the adjusted net income for the three months ended March 31, 2021[113]. - The effective tax rate increased to 28.4% for the six months ended March 31, 2021, up from 20.9% in the prior year, influenced by state tax rate differences[130]. - The company had no material off-balance sheet arrangements as of March 31, 2021, except for letters of credit of $11.7 million[158]. Market and Operations - The company acquired four HMA production and paving companies in North Carolina, adding thirteen HMA plants and expanding its market presence[103]. - The company continues to monitor the impact of COVID-19 on its operations, with no significant disruptions reported during the three or six months ended March 31, 2021[101]. - The company derives revenues from both public and private infrastructure projects, with a focus on highways, roads, bridges, and airports[104]. - The company’s gross profit is directly affected by fluctuations in commodity prices, particularly liquid asphalt and diesel fuel[105].