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3/25/22, 9:42 AM road -20210930
<br />Table of Contents
<br />Capital Requirements and Sources of Liquidity
<br />During fiscal 2021 and fiscal 2020, our capital expenditures were approximately $56.3 million and $52.6 million, respectively. Our
<br />capital expenditures are typically made during the same fiscal year in which they are approved. At September 30, 2021, our
<br />commitments for capital expenditures were not material to our financial condition or results of operations on a consolidated basis. For
<br />fiscal 2022, we expect total capital expenditures to be $60.0 million to $65.0 million. Our capital expenditure budget is an estimate and
<br />is subject to change.
<br />Historically, we have required significant amounts of cash in order to make capital expenditures, purchase materials and fund our
<br />organic expansion into new markets. Our working capital needs are driven by the seasonality and growth of our business, with our cash
<br />requirements increasing in periods of growth. Additional cash requirements resulting from our growth include the costs of additional
<br />personnel, production and distribution facilities, enhancements to our information systems, integration costs related to any acquisitions
<br />and our compliance with laws and rules applicable to public companies.
<br />We have historically relied on cash available through credit facilities, in addition to cash from operations, to finance our working
<br />capital requirements and to support our growth. We regularly monitor potential capital sources, including equity and debt markets, in
<br />an effort to meet our planned capital expenditures and liquidity requirements. Our future success will depend on our ability to access
<br />outside sources of capital.
<br />We believe that our operating cash flow and available borrowings under the Credit Agreement will be sufficient to fund our operations
<br />through September 30, 2022. However, future cash flows are subject to a number of variables, including the potential impacts of
<br />COVID-19, and significant additional capital expenditures will be required to conduct our operations. There can be no assurance that
<br />operations and other capital resources will provide sufficient cash to maintain planned or future levels of capital expenditures. In the
<br />event that we make one or more acquisitions and the amount of capital required is greater than the amount of cash on band we have
<br />available for acquisitions at that time, we could be required to reduce the expected level of capital expenditures and/or seek additional
<br />capital. If we seek additional capital, we may do so through borrowings under the Credit Agreement, joint ventures, asset sales,
<br />offerings of debt or equity securities or other means. However, the unprecedented public health and governmental efforts to contain the
<br />spread of COVID-19 have created significant uncertainty as to general economic conditions for fiscal 2022 and beyond, and our ability
<br />to engage in any such transactions may be constrained by economic conditions and other factors outside of our control. We cannot
<br />guarantee that additional capital will be available on acceptable terms or at all. If we are unable to obtain the funds we need, we may
<br />not be able to complete acquisitions that may be favorable to us or finance the capital expenditures necessary to conduct our
<br />operations.
<br />Off -Balance Sheet Arrangements
<br />As of September 30, 2021, the Company had aggregate letters of credit outstanding in the amount of $11.3 million, future purchase
<br />commitments of $0.1 million for diesel fuel and S2.4 million of minimum royalty payments related to aggregates facilities. Other than
<br />the letters of credit, future purchase commitments and minimum royalty payments, we do not currently have any off-balance sheet
<br />arrangements that have, or are reasonably likely to have, a material current or future effect on our financial condition, changes in our
<br />financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources. See Note 18 -
<br />Commitments and Contingencies to our consolidated financial statements included elsewhere in this report for additional information.
<br />Contractual Obligations
<br />The following table summarizes our significant obligations outstanding as of September 30, 2021
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<br />Payments Due by Fiscal Year
<br />2027 and
<br />Total
<br />2022
<br />2023
<br />2024
<br />2025
<br />2026
<br />Thereafter
<br />Debt obligations
<br />$ 217,500 $
<br />10,000
<br />$ 10,000
<br />$ 11,250
<br />$ 15,000 $
<br />171,250
<br />$ —
<br />Operating leases
<br />8,104
<br />1,614
<br />1,223
<br />929
<br />623
<br />600
<br />3,115
<br />Purchase commitments
<br />51
<br />51
<br />—
<br />—
<br />—
<br />—
<br />—
<br />Royalty payments
<br />2,395
<br />289
<br />196
<br />189
<br />137
<br />124
<br />1,460
<br />Asset retirement obligations
<br />2,788
<br />—
<br />—
<br />—
<br />—
<br />—
<br />2,788
<br />Total
<br />$ 230,838 $
<br />11,954
<br />$ 11,419
<br />T 12,368
<br />T 15,760 T
<br />171,974
<br />$ 7,363
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