2022-132A - Laserfiche WebLink

Home Browse Search

3125/22, 9:42 AM Table of Contents road -20210930 the increase in long -terra debt at September 30, 2021 compared to September 30, 2020. The decrease in interest income was due to a decrease in interest rates earned on our deposits. Provision for Income Taxes. Our effective tax rate increased to 29.3% for fiscal 2021, from 24.0% for fiscal 2020. Our higher effective tax rate was due to the unfavorable impact of a non-deductible legal settlement and related legal expenses, as described in Note 26 - Legal Settlement, and other fiscal 2021 permanent non-deductible expenses. Earnings from Investment in Joint Venture. Earnings from investment in joint venture decreased $0.6 million during fiscal 2021 compared to fiscal 2020, as the construction project from which these earnings were derived had a lower level of activity during fiscal 2021. Net Income. Net income decreased $20.1 million, or 49.9%, to $20.2 million for fiscal 2021 compared to $40.3 million for fiscal 2020. The decrease in net income was primarily a result of lower gross profit and higher general and administrative expenses, partially offset by a decrease in interest expense, net, all as described above. Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA and Adjusted EBITDA Margin were $90.6 million and 9.9%, respectively, for fiscal 2021, compared to $98.9 million and 12.6%, respectively, for fiscal 2020. The decrease in Adjusted EBITDA primarily resulted from lower gross profit and an increase in general and administrative expenses. The lower Adjusted EBITDA Margin was primarily the result of a decrease in Adjusted EBITDA and increase in revenues, all as described above. For a description of Adjusted EBITDA and Adjusted EBITDA Margin, as well as a reconciliation of Adjusted EBITDA to net income, see "How We Assess Performance of Our Business." Adjusted Net Income. Adjusted net income decreased $16.7 million to adjusted net income of $24.0 million for fiscal 2021, compared to adjusted net income of $40.7 million for fiscal 2020. The decrease in adjusted net income was primarily a result of lower gross profit and higher general and administrative expenses, all as described above. Inflation and Price Changes Except as described above in Item 1 of this report under the heading "2021 Fiscal Year Developments — Inflationary Trends," inflation had an immaterial impact on our results of operations for fiscal years 2021 and 2020 due to relatively low inflation in the United States in recent years and our ability to recover increasing costs by charging higher prices for our products, including through sale price escalator clauses in most of our public infrastructure sector contracts. Inflation risk varies with the level of activity in our industry, the number, size and strength of competitors and the availability of products to supply a local market. For more information, see the discussion under the heading "Inflation Risk" included in Item 7A of this report. Liquidity and Capital Resources Cash Flows Analysis The following table sets forth our cash flows for the periods indicated (in thousands): For the Fiscal Year Ended September 30, 2021 2020 Net cash provided by operating activities, net of acquisitions $ 48,500 $ 105,173 Net cash used in investing activities (263,412) (79,363) Net cash provided by financing activities 123,847 41,887 Net change in cash and cash equivalents $ (91,065) $ 67,697 Operating Activities During fiscal 2021, cash provided by operating activities, net of acquisitions, was $48.5 million, primarily as a result of: • net income of $20.2 million, including $49.8 million of depreciation, depletion and amortization of long-lived assets, unrealized gains on derivative instruments of $3.2 million and equity -based compensation expense of $3.5 million; • an increase in contracts receivable including retainage, net of $27.1 million as a result of higher overall revenues due to acquisitions and growth in existing markets; hftps://www.sec.gov/Archives/edgarldata/0001718227/000171822721000107/road-20210930.htm 591144