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  "docSlug": "aeaf881b8cf7",
  "documentTitle": "Construction Partners, Inc. (ROAD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-01-23 00:00:00",
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  "notes": "Uses a specific precedent (Granite Construction) to frame the high DSO as a red flag for potential accounting fraud.",
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      "kind": "callout",
      "text": "August 25, 2022: The Securities and Exchange Commission today charged Granite Construction, Incorporated and its former Senior Vice President, Dale Swanberg, with fraud for inflating the financial performance...",
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      "kind": "callout",
      "text": "ROAD's rising DSOs, which are 8 days above the peer industry average, should put investors on extreme alert.",
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      "text": "ROAD's DSO trend line from 2019 to 2024",
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      "kind": "metric",
      "text": "DSO: 65.5",
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      "text": "ROAD's rising DSOs, which are 8 days above the peer industry average, should put investors on extreme alert. A high DSO is often an indicator of rising financial stress, or in a worst-case scenario, accounting fraud.",
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      "kind": "quote",
      "text": "August 25, 2022: The Securities and Exchange Commission today charged Granite Construction, Incorporated and its former Senior Vice President, Dale Swanberg, with fraud for inflating the financial performance of the major subdivision Swanberg managed. In 2021, Granite restated its financial statements from 2017 through 2019 to correct revenue and profit margin errors allegedly caused by Swanberg's misconduct. The company agreed to pay $12 million to settle the SEC's charges.",
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      "kind": "source-note",
      "text": "Source: ROAD filings using avg. contracts receivable, Bloomberg, SEC Charges GVA With Financial Reporting Fraud, GVA 10-K, NVEE 10-Q disclosing a material weakness",
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      "kind": "table",
      "text": "Industry Peer DSOs table",
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      "kind": "title",
      "text": "ROAD's DSOs Are Dangerously High",
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      "evidence": "The deck highlights several red flags, including rising DSOs and declining ROCE.",
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      "objective": "Is ROAD's financial performance sustainable?",
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