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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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  "pageNumber": 48,
  "pageCount": 70,
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  "nextPage": 49,
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  "notes": "Includes a quote from an industry expert and screenshots of MSHA inspection records.",
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      "kind": "callout",
      "text": "Our industry expert warned about the limited operating history of LSP’s facilities. According to the Mine Safety and Health Administration (MSHA), ROAD’s new subsidiary ACE Aggregates (ACE) had 36 citations in 2024.",
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      "kind": "image",
      "text": "Lone Star Aggregates MSHA inspection records",
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      "kind": "paragraph",
      "text": "Our industry expert warned about the limited operating history of LSP's facilities. According to the Mine Safety and Health Administration (MSHA), ROAD's new subsidiary ACE Aggregates (ACE) had 36 citations in 2024. ACE was recently acquired for $55 million (~4x revenues), and according to ROAD, was estimated to be LSP's biggest aggregate producer by tons.",
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      "kind": "quote",
      "text": "A lot of his EBITDA, especially on the aggregate side is johnny come lately. A lot of these plants he put up are pretty new. Not a lot of history there. I think it is a very risky move by Construction Partners at that price.",
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      "text": "A lot of his EBITDA, especially on the aggregate side is johnny come lately. A lot of these plants he put up are pretty new. Not a lot of history there. I think it is a very risky move by Construction Partners at that price. — Spruce Point Interview, Industry Expert With Decades Experience",
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      "kind": "source-note",
      "text": "Source: MSHA.gov, LSP updated financials, ROAD subsidiaries, Spruce Point research interview",
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      "kind": "title",
      "text": "How Does LSP Achieve Superior Margins When Its Operations Are Frequently Cited For Issues By The MSHA?",
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      "evidence": "Contrasts expert quote about 'risky' new plants with MSHA citation data.",
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      "name": "Analogy",
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      "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?",
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