Construction Partners, Inc. (NASDAQ:ROAD) Q1 2023 Earnings Call Transcript

Alan Palmer: And they do on the services side, the same things we do, the grading and different things like that. So very common to what we have. Of course, we’ve said they’ve got their own asphalt plants, which is very helpful. So not a lot of difference there as far as the vertical integration of things, but they do all the types of construction services that we typically do in our companies.

Kevin Gainey: I think you mentioned too, Alan, that they do — both of them do — combined it was $70 million in revs. Is there a split that you can provide for between the Blue Water and the Ferebee?

Alan Palmer: I think the $70 million was in response to how much backlog they had at the date of acquisition. We’ve not really given a revenue number that I recall on them. But typically, to answer the question, a platform acquisition for us is always a larger acquisition than a bolt-on. And the Tennessee, their size was such that they were bolt on to our Alabama operations, Wiregrass and so they’re integrated into that. But that backlog overall would represent — typically, we’ve got about nine months’ worth of revenue on backlog in our companies at any one time, slightly higher for most of our companies right now. So you could kind of back into that and say that the total revenue would probably be about that backlog divided by, say, 75% to 80%.

Operator: We’ve reached the end of our question-and-answer session. I would like to turn the conference back over to management for closing comments.

Jule Smith: Yes. I’d just like to thank everybody for joining us today. We are right on track and looking forward to a great year. Hope everyone has a good weekend. Thank you.

Operator: Thank you. This does conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.