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3/25/22, 9:42 AM
<br />Table of Contents
<br />road -20210930
<br />• the implementation of our financial and management information systems, business practices and policies;
<br />• our pursuit of multiple acquisition opportunities simultaneously; and
<br />unforeseen expenses, complications and delays, including difficulties in employing sufficient staff and maintaining
<br />operational and management oversight.
<br />In addition, potential acquisition targets may be in states in which we do not currently operate, which could result in unforeseen
<br />operating difficulties and difficulties in coordinating geographically dispersed operations, personnel and facilities and subject us to
<br />additional and unfamiliar legal requirements.
<br />We cannot guarantee that we will achieve synergies and cost savings in connection with future acquisitions. Many of the businesses
<br />that we previously acquired, and businesses that we may acquire in the future, could have unaudited financial statements that are
<br />prepared by management and are not independently reviewed or audited, and such financial statements could be materially different if
<br />they were independently reviewed or audited. We cannot guarantee that we will continue to acquire businesses at valuations consistent
<br />with our prior acquisitions or that we will complete future acquisitions at all. We also cannot know whether there will be attractive
<br />acquisition opportunities at reasonable prices, that financing will be available or that we can successfully integrate acquired businesses
<br />into our existing operations. In addition, our results of operations from these acquisitions could, in the future, result in impairment
<br />charges for any of our intangible assets, including goodwill or other long-lived assets, particularly if economic conditions worsen
<br />unexpectedly.
<br />We may lose business to competitors that underbid its and may be unable to compete favorably in our highly competitive industry.
<br />Most of our project awards are determined through a competitive bidding process in which price is the determining factor. Because of
<br />the high cost of transporting HMA, our ability to win a project award is often influenced by the distance between a work site and our
<br />HMA plants. We compete against multiple competitors in many of the markets in which we operate. Some of our competitors are larger
<br />than we are and are vertically integrated. As a result, our competitors may be able to bid at lower prices than we can due to the location
<br />of their plants or as a result of their size or vertical integration advantages. Government funding for public infrastructure projects is
<br />limited, contributing to competition for the limited number of public projects available. An increase in competition may result in a
<br />decrease in new project awards to us at acceptable profit margins. In addition, in the event of a downturn in private residential and
<br />commercial construction, the competition for available public infrastructure projects could intensify, which could materially and
<br />adversely impact our financial condition, results of operations or liquidity.
<br />We may be unable to obtain or maintain sufficient bonding capacity, which could preclude us from bidding on certain projects.
<br />A significant number of our contracts require performance and payment bonds. Sureties typically issue or continue bonds on a project -
<br />by -project basis, and they can decline to do so at any time or require the posting of additional collateral as a condition thereto. Our
<br />ability to obtain performance and payment bonds primarily depends on our capitalization, working capital, past performance,
<br />management expertise, reputation and certain external factors, including the overall capacity of the surety market. Events that adversely
<br />affect the insurance and bonding markets generally may result in bonding becoming more difficult or costly to obtain in the future. If
<br />we are unable to obtain or renew a sufficient level of bonding, or if bonding costs were to increase, we may be precluded from bidding
<br />on certain projects or successfully contracting with certain customers, which could limit the aggregate dollar amount of contracts that
<br />we are able to pursue. In addition, even if we are able to successfully renew or obtain performance or payment bonds, we may be
<br />required to post letters of credit in connection with such bonds, which could negatively affect our liquidity and results of operations.
<br />Our business is seasonal and subject to adverse weather conditions, which can adversely impact our business.
<br />Our construction operations occur outdoors in an area of the country in which hurricanes, tornadoes and tropical storms are common
<br />and snow frequently occurs in certain markets in the winter. As a result, seasonal changes and adverse weather conditions, such as
<br />extended snowy, rainy or cold weather, can adversely affect our business operations through a decline in the use and production of
<br />HMA, a decline in the demand for our construction services, alterations and delays in our construction schedules, and reduced
<br />efficiencies in our contracting operations, resulting in under -utilization of crews and equipment and lower contract profitability.
<br />Climate change may lead to increased extreme weather and changes in precipitation and temperature, including natural disasters.
<br />Should the impact of climate change be significant or occur for lengthy periods of time, our financial condition or results of operations
<br />would be adversely affected.
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