{
  "docId": "019dd923-622c-750b-8b99-a016b8cafb9e",
  "docSlug": "aeaf881b8cf7",
  "documentTitle": "Construction Partners, Inc. (ROAD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-01-23 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 43,
  "pageCount": 70,
  "prevPage": 42,
  "nextPage": 44,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "overcrowded",
  "nDataPoints": 35,
  "notes": "Includes a CEO quote to frame the company's own narrative on margins, which the slide then challenges with benchmark data.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "quote_block",
    "kpi_table",
    "bar_chart_vertical"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-a016b8cafb9e/43",
  "deckHref": "/decks/019dd923-622c-750b-8b99-a016b8cafb9e",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-a016b8cafb9e.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-a016b8cafb9e#slide-43",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "A recent benchmarking analysis of road paving profit margins suggest that LSP’s financial performance is at best average relative to the industry.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-25b4-767c-9bf4-e990fb618f98",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.5,
        "w": 0.44,
        "x": 0.53,
        "y": 0.4
      },
      "kind": "chart",
      "text": "Paving Profit Margins 2024 distribution",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c8580229-2565-4d93-87fe-8f02184cff49",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Profit Margins: 22%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-25b4-767c-9bf4-f156ff1e3d5c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.94,
        "x": 0.03,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "A recent benchmarking analysis of road paving profit margins suggest that LSP's financial performance is at best average relative to the industry. LSP's financial results also benefit from higher margin materials sales, no depletion expense, and paying very little income taxes.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "51c72dde-f823-4ce0-b527-b89422ae4182",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.85,
        "x": 0.14,
        "y": 0.29
      },
      "kind": "quote",
      "text": "And so they have great margins just in their contracting but then they add to that margin by capturing the value of aggregates and liquid asphalt by vertically integrating, which is our second margin lever.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1c266ac1-f365-4795-b32d-7529957da305",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“And so they have great margins just in their contracting but then they add to that margin by capturing the value of aggregates and liquid asphalt by vertically integrating, which is our second margin lever.” — CEO Smith Deal Call Oct 21, 2024",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-25b4-767c-9bf4-ee028e304584",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.55,
        "x": 0.03,
        "y": 0.92
      },
      "kind": "source-note",
      "text": "Source: LSP Financials and update, \"Top 50 Paving Contractors 2024\", ForConstructionPros.com",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "af268344-a169-485d-ae7d-d4ff9bcb3231",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.5,
        "w": 0.48,
        "x": 0.03,
        "y": 0.4
      },
      "kind": "table",
      "text": "LSP's Financial Results table (2021-2024)",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f4cb2984-8fd0-4347-99e5-65f9e2fc0289",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Recent Industry Benchmark Analysis Suggests That LSP's Margins Are Average",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1de7bd4f-f880-4d0d-9da7-2e7c5df0986b",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison-frame",
      "slug": null,
      "matchId": "57bafe27-b4be-4dca-82f6-d11f0f8e9a62",
      "evidence": "Compares company performance against industry benchmark distribution",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [
    {
      "to": 49,
      "from": 42,
      "name": "Analogy",
      "slug": "08-analogy",
      "bestFor": "Complex concepts, new markets, technical explanations for non-experts",
      "matchId": "9e9a041d-c35c-4959-b3ca-07b320b31ec5",
      "evidence": "The deck presents a peer benchmark analysis suggesting that LSP's margins are average and its conversion has been declining.",
      "position": 3,
      "objective": "How does ROAD's acquisition of Lone Star Paving compare to industry benchmarks?",
      "structure": "The Familiar Domain -> Key Parallel -> Applied to Our Situation -> Insight",
      "confidence": 0.7,
      "description": "Explain the unfamiliar through a well-understood parallel domain"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}