Q4 2020 Construction Partners Inc Earnings Call
Greetings and welcome to the construction partners fourth quarter fiscal year 2020 results call. At this time all participants are in the listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded this now my pleasure to introduce your host Mr., Rick Black Investor Relations for construction partners. 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 fourth quarter and fiscal year 2020 results.
This call is also being webcast and can be accessed the the audio link on the events and presentations page of the Investor Relations section of the construction partners Dot net.
Information reported on this call speaks only as of today December 11, 2020. So please be advised that any time sensitive information may no longer be accurate as of the date of the replay.
I would also like to remind you that the statements made on today's discussion that are non historical facts, including statements for expectations of future events for future financial performance are considered forward looking statements may pursue it made pursuant to the safe harbors provision in the act of the private Securities Litigation Reform Act of the banking on the hot.
We'll be making forward looking statements as part of today's call. The by their nature are uncertain and outside of the company's control Act.
Actual results may differ materially.
Please refer to the earnings press release that was issued this morning for artist disclosures on forward looking statements. These.
These factors as well as other risks and uncertainties for described in detail in the Companys filings with the Securities and Exchange Commission.
Management will refer to non-GAAP measures today, including the adjusted EBITDA reconciliations to the nearest GAAP measures can be found at the end of our earnings press release construction partners assumes no obligation to publicly update or revise any forward looking statements. The.
Now I would like to turn the call over the construction partners CEO Charles on one's Charles.
Thank you Rick and good morning, everyone.
With me on the call today are George Smith, our Chief operating Officer, Alan Palmer, Our Chief Financial Officer, and net Fleming, our executive Chairman.
We are pleased with our strong physical 2020 profitability.
These results were driven primarily by there's been project the broke activity and beating the.
The effective utilization of crews and equipment vertically integrated.
Synergies and lower cost of feel why we face challenges in 2020, primarily from the global Penn did make I am extremely proud about organization for response and our people focused culture. The there's a beer.
No no central business, there and the spend day that our leadership team managers and employees adapted and overcame many challenges while continuing to execute on our strategy and the liver great results.
Heading into the physical year 2021, now organization is well positioned for organic and acquisitive growth.
We see strength in the state funding programs across our geographic footprint, where the demand for road repairs and maintenance work remains cost Oh.
Over the past 10 months, we have acquired 13 hot mix asphalt plants and we now operate 46 hot mix asphalt plants companywide.
In addition, we continue to have many conversations both in our existing stage and adjacent states regarding future acquisition opportunities.
From the federal infrastructure of funding of perspective.
We remain optimistic that a new bill could get passed in 2020 more.
We are confident that the our nation infrastructure will continue to be a primary focus for our country to improve and maintain the safety of the traveling public and economic development.
Beyond these positive external factors. We are also very pleased with the transition.
Over the past several much with the promotion of Jewish Me is true Chief operating officer.
As a former owner jewel of led our branch made the company subsidiary for nearly a decade before becoming the C O M.
He is and now effectively driving the continued development of the organization and overseeing day to day operations. He has also taken of lead and executing our recent acquisitions and their successful integration into the CP of organization.
It is clear that George leadership experience and vision of positively impacting our kind of company fine.
Finally.
Based on our current backlog in the near term visibility of the business. We are pleased with our outlook for physical 2021, which indicates strong growth for CP or in the coming year.
Before turning the call over the jewel.
Like the thank our leadership team.
And approximately 2500 the employees for their commitment dedication and hard work that enables us to successfully execute our strategy.
I'll now turn the call over the Jewel did talk about our recent acquisitions and to comment on operations Joe.
Thank you John Good morning, everyone on.
Operations of our business are doing well and we finished our fiscal year with great project work productivity across our markets in the states.
Oh, just like all of our employees for their dedication to staying safe and their hard work.
As of the Central business, we have continued to operate through the code of 19 pandemic without significant the was the.
For the flexibility of our employees and the effectiveness of our safety protocols have helped us to manage the pad in the related challenges in our day to day operations.
Now, let's take a look at the demand of funding for our services.
Overall in the states, where we currently operate demand remains strong for the road repair and maintenance projects that comprise the public side of our business.
State budgets and gas tax collections are stabilized.
We currently view potential 2021 upside.
On the infrastructure spending in Florida.
Alabama, the North Carolina.
While we expect the Georgia to remain relatively flat.
In North Carolina, as we discussed in the past.
The DRC has overcome it spending issues and the has now resumed project lending and is returning to a normal growth.
In addition, the state passed the new law the requires a higher percentage of the deal the budget the.
On the spend on maintenance for the current infrastructure.
Commercial work throughout our states has remained constant.
And we do not currently see downward pressure or pull back on project bidding on the private market.
Lastly, the life for about an update on the acquisitions.
In Florida, we are very pleased with the hot mix asphalt plants, we are caught the acquired the.
Fiscal 2020, and the synergies for about of our market concentration in the parts of the state where we currently operate.
In the past two losses, we've also completed three strategic acquisitions of North Carolina, adding.
Adding 11 hot mix asphalt plants.
Further expanding our footprint in several of growth oriented markets.
And as Charles mentioned, we continue to have conversations.
The on our existing states and some adjacent states with potential acquisition candidates.
Our leadership team is actively working on identifying and engaging with companies that fit well with our future growth plans.
I'd now like the turn the call over the Allen to discuss our financial results.
Like the jewel and good morning, everyone I want to start the highlighting our key performance metrics in the fiscal 2020 years old.
[noise] compared for the fiscal 2019 revenue was 785.7 million of three tenths of a percentage.
Gross profit was 122.2 million of 50 basis points the.
Net income was 40.3 million compared to 43.1 million last year.
Our adjusted EBITDA was 98.4 million of 6.6 per se and our adjusted EBITDA margin was 12.5% of 70 basis points.
Although the pandemic has been challenging for everyone. We have adapted to the necessary protocols.
Our managers crews in corporate support all did a great job of managing our business, while we continue to work.
Grow our company and maintain margins.
We also managed through the downward pressure on top line revenue, especially on the second half of the year that resulted from the last book and burn how revenue projects that typically occur in the second half of each year.
Importantly, while the competitive bidding environment was quite aggressive we maintained our focus on project work margin rather than trying to achieve the increased revenue at a detriment the margin.
In the last few weeks of the fourth quarter. We also experienced higher the unusual weather related delays due to a continuous line of hurricanes in the storms in the states where we operate.
From a profitability perspective during the quarter, we benefited from lower day, so calls and pricing on our liquid asphalt terminal.
We also increased our self perform work during the quarter, where we use our own crews to do work with typically subcontract out and we experienced less overtime. The calls all of these factors led the solid margins expanded year over year.
Turning now to the balance sheet at September Thirtyth, we had $148.3 million of the cash and $39.3 million of availability under our existing revolving credit facility. After the reduction for outstanding letters of credit.
As of the end of the quarter, our debt to trailing 12 months EBITDA ratio was 1.0 weight.
This liquidity provides financial flexibility in today's uncertain economic environment and provides capital the for potential future acquisitions, allowing us to respond quickly to growth opportunities when they arise.
Cash provided by operating activities was $105.2 million for the 12 months ended September Thirtyth 2020, compared to $55.3 million for the same period last year.
Capital expenditures for fiscal 2020 were $41.1 million, excluding expenditures of $11.5 million on the first quarter of this fiscal year to purchase equipment previously subject operating leases.
Project backlog at September Thirtyth, 2020 was $608.1 million compared to $531.6 million at September 30 of 29 true ups.
For approximately 90% of the backlog will be completed in fiscal year 2021.
This does not include any backlog for the for your recent acquisitions.
Turning now to our outlook for fiscal year 2021, we project revenue of 950 million the $1 billion.
Net income of $42 million to $46.5 million and adjusted EBITDA of 109 to $108 million to $10 million.
Approximately half of the revenue increase for 2021 is coming from acquisitions and approximately half of the revenue increase comes from organic growth in fiscal year 2021.
In summary, we are pleased with fiscal 2020 results on the organizations resilience and rapid responses. Despite the many challenges we faced in this new world.
We look forward to fiscal 2021, as we plan to continue to.
The grow the company.
I'll now turn the call over to our executive Chairman net slightly net.
Thank you Alan.
Before we open the call to your questions I'd like to make a few comments about the outstanding performance by all of our leaders managers and all the employees of CPR for.
The team successfully adapted to the challenge is 2020 presented.
And continue to manage the business for growth and profitability, while simultaneously building backlog for 2021.
In addition, the recent acquisition demonstrates Cpis continued strategic focus as the premier consolidator in a very fragmented industry.
As the company moving into 2021, we're very pleased the jewels transitions of the COO role his leadership vision and operational experience are invaluable to our organization on our central to our continued consolidation and growth.
The future is brighter now for CPR of it at any point in our company sales for the company is well positioned both organizationally and financially and we are confident about the opportunity to continue to consolidate within our boss day.
And possibly moved the new states.
As evidenced by the 2021 outlook. We're also extremely bullish about organic growth opportunity with this proven strategy.
With that.
We'll now take questions operator.
Thank you well now be conducting a question and answer session. If you'd like to ask the question. Please press star one on your telephone keypad a confirmation total indicate your line is in the question queue.
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Please ask one question and one follow up question and then re queue for any additional questions.
Our first question comes from the line of Andrew Wittmann with Baird. Please proceed.
[laughter].
Mr. Wittmann your line is life.
Right.
I apologize for the current right.
Thanks for taking my questions guys and good morning I.
Wanted to ask a couple of these questions here I guess I'm, just kind of kind of played done the little bit, but you know the the revenues were light of what we expected, but the profit margins were really really great you guys talked about lower diesel price and self perform and less overtime I guess, the second one of greater.
Self performance, where my question really resides and you know with the margins as good as they were if it's on the suggests that like maybe you should keep doing more of whatever you did including maybe self perform so again can you just talked about the you know how much of the benefit that was in the quarter.
Sure.
If you can continue to do that and if you if you choose not to which has never been the company's strategy in the past.
Why not do that.
[noise] yeah, Andy the the this year because in some of our markets. We did not have as much work to do as we typically would in the third and fourth quarter of then we chose on some of those projects to utilize our own crews to self perform.
Typically we try to style for 12 months, but in the the summer the second half of the year, you often have surges, where you've got a more work than your crews and equipment can do and so we use subcontractors to do some of that work.
And we just bought on generally it's not the efficient to style for peaks all year round and we don't we've got a stable work force, we don't want to be hiring in laying off people. So this year because of the lower volume of work that we had and the number of our markets North Carolina being bearish for.
Specific one.
Some of the work the subcontractors to do that we also do a.
We just chose to have their people not be working on hours to be working and when you do that whatever their profit margin was on that subcontracted work, we captured but it's really not the of the fish.
With some of the seasonality of that we have to have permanent crews that in the.
The first six months of the year or are not being able to get a handful of weeks because you just got lot lower volume.
That's the that makes sense I I knew there had to be an explanation. So thank you for that I guess for my follow up question I wanted to ask about the 21 guidance in particular, the Mi hurts you clearly hear that half of the growth year over year as organic the other half the from acquisitions.
On a specific to the the acquisitions portion of the revenue growth I was wondering if there's any inclusion of acquisitions that maybe have not been yet announced publicly.
In that guidance for if the guidance includes only deals that have been announced publicly at this point.
Yeah. Good question I mean, we've always follow the.
Oh pattern of when we provide our guidance at any point in time, whether it's the beginning of the year or the updated guidance that we include in our basic guidance for say the mid point of our guidance. That's gone the for things that we know as far as what markets. We're in and also what we see as for as the.
Future for backlog that we're going to book and burn. So if you take this year's guidance.
The 50 50 of.
The applies to you know that guidance the upside of that guidance the higher revenue would be.
The other growth from other green sales.
The acquisitions or higher than what we currently anticipate organic growth on the downside on the lower side with the of the acquisitions, we've made or the markets. We're already in organic markets don't get quite the organic growth that we think they will so.
You know they are there no.
The non acquisitions built in to the basic guidance, but on the upside any one of the three levers for growth that we talk about range sales acquisitions or higher than anticipated organic growth could push us to that upside.
Okay. That's.
That's helpful. Thanks, guys have a good day.
Thank you Andy.
Thank you for our next question comes from the line of Josh Wilson with Raymond James. Please proceed with your question.
Thanks, Good morning, gentlemen, congrats on the quarter.
Thank you.
A couple of items for me also on the acquisition front first could you quantify what the acquired sales were in the September quarter, you just reported.
It would have been approximately $13 million.
As I think are through September it was a 33.8 and rude excuse me through June of 33.8 mass 49.6.
And then as we think about the contribution of the new acquisitions.
Given that they're in the North Carolina, which has been a more pressured market both from a volume and margin perspective.
Should we assume the their EBITDA contribution is for low fleet average on that maybe your ultimate expectations for these businesses are.
For higher than what might the reflected in the 21 guidance because they might be more more depressed from the environment.
Yeah I Miss the good question I mean, the as we say every time, we built our guidance from the ground up on all 46 markets.
The new acquisitions that we made.
The company people at Fred Smith, and the management of those companies EPS put that together as.
As you know the calls here in North Carolina, that's been a.
Very tight market of the DMT did not let any really resurfacing projects for the last 18 months or so.
While we've seen that a recovery starting in October and I think Joel talked about that some of his remarks.
Typically when that the pipe opens back up it's very competitive on those jobs that are being the in those first few months, but we see the a more normalized margin in that whole market not just the acquisitions, but our existing markets in that state.
More in the spring when the the work gets back to a more normal letting size so but of those.
Those acquisitions had some backlog.
When we acquired on and while it's not on our September Thirtyth numbers of we've taken that in the consideration and putting together our overall guidance.
Then if I could just squeeze in one more housekeeping items given the cadence of letting the are you still expecting the normal of.
60 for 40 60 of seasonality or is that kind of be different this year because of the the letting the process.
No our power budget.
As it currently stands is of just about back on target with the 60 40 60.
This current year was more 40 to 58, but the next year.
Quarter wise it should return to the 40 60 guidance.
Thanks, I'll get back in queue.
Thank you.
Thank you for our next question comes from the line of Michael Feniger with Bank of America. Please proceed with your question.
Hey, guys. Thank you for for taking my questions I'm, just I was hoping you kind of break down the buckets of of the margin guidance of of obviously you guys had a great year of margin of 2020 2021, the there's a bit of conservatism, but have you kind of break down the buckets of why the guide, but with the seen not the cash.
The margin is it like you are referring to more subcontracted out is that the diesel price is the the acquisition mixing of down just hoping we could get a feel for what are the big reasons, why we see the margins kind of how the great 2020, and then come back down a little bit of 2021.
Yeah. Good question, Michael I mean 2020, the as we've said starting in our Q3 and then we said in our GAAP revise guidance that we put out for for this year, we benefited from the.
Dropping prices in petroleum products, primarily diesel and the price of liquid asphalt and when we gave our fourth quarter original.
The original fourth quarter or full year of updated guidance at the end of the third quarter, we were beginning to see diesel and liquid rise, but that rise stopped and it actually dropped a little bit and we benefited from that.
The way I like the say it is in 2020, we had a little bit of a tailwind from dropping prices. It's not so much that is that significant but it is a little bit of the tailwind in 2021, we have seen.
Since the end of September significant increase in the of price of crude we've already seen our diesel prices going up our liquid asphalt prices going up.
We don't see would the lack of things coming on line that that's going to change so while we pass along a lot of those costs and Weve got index is there's always a little headwind on so if you take the lack of tailwind of the tailwind. We had this year in the headwind we're going to have next year the amount there.
Yes, probably 40 to 50 basis points in margin. So that's that's a large part of that Mark.
Margin difference.
The is between having a little bit of.
Tailwind on little bit of headwind and then you know when we do the higher volumes just like we said with the sub contracting the higher percentage of the war of that's going to be a little bit of a mark.
Margin that we're going to get the subcontractors that we got this year and then certainly historically, we've always had acquisitions the that come in the generally aren't don't have the same margin profile that we do and the fact that as someone mentioned earlier the the user in North Carolina of where there some partners.
Jeweler dynamics that we've got to work through that's part of what's doing that.
Got it and on you guys mentioned before I mean, you know there seems like there's some hope for consensus on infrastructure on the federal side, what what are you assuming that that can get past. This year I'm, hoping you could kind of talk about that what you guys are kind of hoping for you know within the next 12 months on it.
Right.
You know from a better on the side and as you know there's.
Always been discussions been of very bipartisan the conversation the fact the.
The Senate side basically space for sake has put a proposal on the type of where the 28% increase on day.
And the house has put one on the 42% increase so we feel very confident and 2021 this will.
Something will happen in 2021 to a.
We look forward to show expecting may be on but nothing is baked in.
The deal because who knows how long it could take to get everything.
Taken care of but we're very optimistic that something is going to take place to get the economy, Rolling again, and even though the traffic's been down on the areas would operate in the traffic count is kind of come back and now we're seeing on tax reserve on the tax receipts that come in strong so when that.
Markets, but when you hear about all over the country.
There's a lot of a weak weakness and the.
On the receipts come in and so you know we anticipate that this is a good mechanism to get the economy Rolling again, and there is something that I think both parties can agree on and.
Because it is a major asset of our country to make sure the traveling public interest at their travel and shake the Lea and it's a huge economic development engine.
It makes sense for I can just squeeze one last one and I think in your comments you guys are talking about the acquisition of the pipeline have you guys mentioned adjacent states. So on the are.
Are you guys looking to maybe expand outside of those five core states, but it'd be great and if you guys can kind of.
First off thank you.
No.
Yes.
We are always have.
Having conversations.
In the southeast and we continue to have that not only in the states that were currently in but in the states within our footprint or adjacent where we are currently in.
So those are ongoing conversations that.
We are having and will continue to have.
And Michael interest charges, adding to that.
Like Slide you said the were have been conversations inside of the markets when an outside of the markets. The you know we've been of.
They are pleased in the way we've grown the company in the boot brand and we still have plenty of opportunities, but as we look out there is just a just a very large number of just the excellent.
Candidates out there that show the you know this looking at different options of exit strategies for for.
Retirement in the M- issues and things like that and no. But there is a lot of companies. Ajay said that said, we're where we have had some conversations with them.
There are some excellent companies with eggs for that opportunities though.
Especially one day on these other markets.
Okay.
Thank you for our next question comes from right of Stanley Elliott with Stifel. Please proceed with your question.
Hey, good morning, everyone. Thank you all for taking the question of me.
Are you talking about the M&A it sounds like there's a fair amount of capacity of fair fair amount of activity going on you on what is the capacity that you all potentially could see into next year and then I'm curious if you know maybe you'd be willing to be maybe a little more aggressive on what you would historically if there are changes in the tax codes on things like that or debt or.
Looking at some of the family businesses to have to look at the other options.
Okay.
Well you know there is as we've always said, there's plenty of opportunities of.
Well, we don't try to speed up our pace of you know we.
Don't take this a growth.
The growth is very profitable top line.
Growth in we're not going to get out over our skis and we have a lot of opportunities and.
We we really of going just take care of each one of these one net the time and handle them and we've got opportunities in all of the states that we operate day in and the Great thing is that we have of management team and each one of our companies in IP and not counting on that we can fully integrate these.
The ease of.
Oh acquisitions as they come on and you know Ben and doing the these deals that we know the seller.
Is the one this in control of the deals because you know its their company and they know what their goals are and they know how they work for a company and their employees the end debt when they when they leave the company and so you know.
So always that's why it's always.
Interesting good to have several targets out there to be talking to because you know the sellers sometime they they don't all come together at the same time and it's worked out very well bus and so we don't see any thing there is going to go different then what the our normal business day. So we are a growth company and we go growth.
By organic growth in Greenville, and acquisitive growth in the acquisitive growth is a very key part of our.
Growth strategy, and we have continued to execute.
You know when the timing is riding on the culture is right the.
The Stanley just the previous Allen the of the comment I mean on an ideal world we might for acquisitions in the last of.
I guess nine to 10 months of.
In the perfect World, We would have done one every three months, but as Charles said the sellers are more of the determinant of when those close on when they're ready to actually sell their company.
I think we've demonstrated with three of those for being in the last the.
60, or 75 days that we can close them.
We've got plenty of capacity to close on quickly if those opportunities present themselves on the as Charles said, that's why we have a lot of conversations going on at any one time and while you know our flexibility to be able to close quickly when they're ready to sail makes us one of the preferred of.
Buyers out there because we can keep the confidential and that's very important to these family owned businesses and you know we can close when they are ready to.
Great and then hypothetically with the same we do get a new highway bill in the first quarter first half of of 21. When do you start to see that in your your your numbers is that 12 months of that 18 months as it sooner than that.
Any color would be great.
I mean, typically if you use the stage, which is in our states of raise taxes on the last few years generally from the time, it's enacted not on its past because it might be of delayed enactment, but typically from the time, it's enacted its about six months.
Before they start letting projects now the good thing for US is it usually the early projects or maintenance and repair projects. So those in the on the front end and those are usually quickstart projects, but I would say conservatively before it starts showing up on our revenue numbers its probably about nine months.
Perfect guys. Thank you very much happy holidays.
Hey, Thanks, Dan.
Thank you. Our next question comes from the line of Adam Thalhimer with Thompson Davis. Please proceed with your question.
Hey, good morning, guys. Congrats on the strong quarter inch on outlet.
Hey, can we start with the private construction trends kind of broadly what your sand interstates.
Adam on this in June of.
Yeah, we we continue to see strong.
Activity in our markets throughout our stakes in the profit markets and.
Lots of projects the bid on and we monitor the bat closely but.
Right now on the economy seems to continue to have a lot of proud of market activity.
As the feel like Thats more housing related than commercial are you seeing both Joel.
Yes.
What were seeing both I think obviously the low interest rates of the housing market is clearly strong, but you know with a strong housing market. The commercial activity follows that we're also seeing a lot of warehouse of projects.
With just the growth in online shopping there just a lot of demand for warehouse space and industrial of.
Development. So it's really the it's really several different things that are making up the private market right now and.
An add on part of that's being driven like dual said with the really the changing the economy and how people get goods and so the warehouses, but we're also seeing the calls were in the southeast there's a lot of relocation of both businesses and the people to these areas because they are not wanting to get corn.
The thing then in places, where they can't get out and enjoy the things so.
We're just seeing a lot of notices of companies that are relocating to.
You know more open areas offices that are being designed and built that are going.
On to accommodate what might become more of a more on than an exception of what we had this year were people out of.
Can still work.
The site so.
Okay.
I think that's consistent and then on one for you Alan I wanted to ask about 2021 cash flow expectations.
Free cash flow of.
Yeah, well the base.
Basically our outlook is for as the appreciation excuse me as far as a capital expenditures on 2020, we cut back on our capital expenditures.
When the pandemic here and kind of a substantial amount of out so our capex for next year on.
Our our maintenance Capex is going to be probably 20 or 30 basis points higher than normal we signed that normally it's about three on the quarter of the 3.75 per cent of our revenue there will be a little bit higher than that what we've got budge. The there's about 3.9% of revenue.
And part of that's due the catching up its also typically when we make acquisitions. Their fleet is not won't be quite as up to date is ours is so we'll have some additional capital expenditures kind of get it up to two of.
What we want so those the sense, we're replacing items, even though it's on on acquisition, we treat that as maintenance Capex and then with the growth that we see organically for next year and the fact that we held off on some of that growth.
The growth Capex that we've got out of 2020.
I think our of we're going on the probably around 1% just over a tad over 1% of our revenue. So overall 2021 of the.
Right around 5% total capex.
No.
For the year.
Okay any idea of working capital might swing with the I mean, it's pretty good organic revenue growth.
Yeah, you know and as I've said before some of that is timing of when we close out the year on.
This year.
Like I mentioned in my comments that the last couple of weeks of of.
Our fiscal year, we're we have a lot of inclement weather. So that really helps when you revenue at the end of the quarter on is where you fall short it helps your cash flow in that quarter, but.
I think that we should be able to have cash flow from operations similar to what we've had we've in the last night.
19 and of.
When we had the we added the asphalt terminal we had a huge inventory we had the bill and things like that for a lot of that's behind us.
We've said before during the pandemic. The video teams have done a great job of making sure that we're getting paid timely and we've gone through some issues were I will comment because of some outsourcing they were doing and in 18 and 19 that got us.
Load down some pay much but I think we should have a very strong.
Cash flow from operations of.
In 2021 likely the an important win.
Great. Okay. Thanks, guys. Good luck.
All right. Thank you.
Thank you for our next question comes from the line of Brent Thielman with D.A. Davidson. Please proceed with your question.
Hey, Thanks, Congrats on a great quarter, great credit for the year.
Hi, Thank you for grant revenue.
Hey, Alan you got the completed a couple of deals since the.
The ended the quarter is there is there any way you can provide the cumulative value for this year, just trying to get the kind of a pro forma expense for cash.
Cash and debt.
Since September.
Oh.
Well, we did not incur any debt to acquire them. So we did not.
We had sufficient cash.
To do that.
And.
So there was no our debt to EBITDA on of.
On a pro forma would have gone down and then the.
Yeah on the cash for those would have been in the.
Try the thing.
Some of them happen so quickly.
The $50 million to $60 million range of cash spent for them.
That would be before inventories on just speak for the hard assets and goodwill.
Okay. Okay, and then are your EBITDA, you guys still able to find the yield.
And the multiple range is you've historically talked about kind of this mid day.
Upper single digit range I, I wonder, how the pandemic and.
Funding on certain the layer on top of that what's been going on in North Carolina, the how that's impacted expectations out there.
[noise] I mean bread it really hasn't changed how we bought the companies we would get.
Fair market value appraisals on the property plant and equipment.
We look at their historicals as far as what kind of potential there is in the market in the and based.
Based on the the goodwill that we pay on top of the fair market value on that so it really hasn't changed I mean as for as a multiple of trailing EBITDA, it's still in that for and a half of the filing of half times trailing EBITDA with about you know.
30, 35% of the total purchase price being goodwill.
All it really is not.
That the directly by what's going on economically or in these cases and in North Carolina and these are very well run companies of just like we were able to pivot.
David and do some good things even during the the pandemic. They they're good managers that know how to manage their backlog and keep the business going and of so.
You know, we really weren't taking advantage of some kind of a big downturn because of the the of.
Of the the letting situation.
So really just.
No pretty much the same.
Okay, Okay, and then one more if you can.
Talked about you know the for core market, the net Alabama, Florida, North Carolina, the mix sensations, yet you're probably pick up here in 21, Georgia has been a really strong market. It seems like here in 2020 is the comment you know that that the that market might be flat just a function of.
Yeah on the fact that spent the strong this year is there anything more to that.
Well you.
When we look at it we look at the markets that we're in and so we're looking at it from the ground up and on the ones, we got in Georgia for.
May not have been the ones that solve some of the big dollars that you might are saying, so we're not really basing on on what the state as a whole is doing we're seeing what projects are going to be letting and in our particular markets and those profit centers. One of those 40 of those 46 the ones that are in Georgia the.
End of the day, we add to what each of those comps to win and for US we're seeing that those markets are going to be flat.
So there's there's differences throughout those through.
Throughout the state and I don't know what all is going on in Georgia, but I do know of in our markets. We've not seen many of you know.
Huge increase of the number of projects that are available to beat it.
Okay. Okay I appreciate it thanks guys.
Thank you ladies and.
Some of that concludes our question and answer session I'll turn the for back over to management for any final.
Okay. Thank you very much of this Charles and not just want to thank you all for your time in the of patients and no. Thank.
Thank you so much for those the question understand where we're just excited to give use of good answers on those and I just want to wish everyone a safe in the.
Prosperous new year.
Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.