1 unchanged sentence
Commodity Price Risk
−Removed: We are subject to commodity price risk with respect to price changes in liquid asphalt and energy, including fossil fuels and electricity for aggregates and asphalt paving mix production, natural gas for HMA production and diesel fuel for distribution vehicles and production-related mobile equipment.
+Added: We are subject to commodity price risk with respect to price changes in liquid asphalt and energy, including fossil fuels and electricity for aggregates and HMA production, natural gas for HMA production and fuel for distribution vehicles and production-related mobile equipment.
In order to manage or reduce commodity price risk, we monitor the costs of these commodities at the time of bid and price them into our contracts accordingly.
4 unchanged sentences
We do not enter into commodity swap contracts for speculative or trading purposes.
−Removed: These fuel and natural gas swap contracts provide a fixed price for less than 50% of our estimated fuel and natural gas usage for the remainder of fiscal year 2022 and fiscal years 2023 and 2024.
−Removed: The table below provides information about the Company’s swap contracts that are sensitive to changes in commodity prices, specifically diesel fuel and natural gas, as of June 30, 2022.
+Added: These fuel and natural gas swap contracts provide a fixed price for less than 50% of our estimated fuel and natural gas usage for the remainder of fiscal year 2023 and part of fiscal year 2024.
+Added: The table below provides information about the Company’s swap contracts that are sensitive to changes in commodity prices, specifically fuel and natural gas, as of December 31, 2022 (unaudited).
Carrying Amount Fair Value
7 unchanged sentences
Contract amount (in thousands) $ (797) $ (797)
−Removed: (1) See also Note 15 - Investment in Derivative Instruments and Note 16 - Fair Value Measurements to the unaudited consolidated financial statements included in this report.
+Added: (1) See also Note 15 - Investment in Derivative Instruments and Note 16 - Fair Value Measurements to the unaudited consolidated financial statements included elsewhere in this report.
Interest Rate Risk
3 unchanged sentences
We do not enter into such derivative instruments for speculative or trading purposes.
−Removed: See also Note 19 - Subsequent Events to the unaudited consolidated financial statements included in this report that discusses a new interest rate swap agreement we executed on July 1, 2022 to hedge against SOFR interest rate fluctuations on a portion of our variable rate debt.
−Removed: At June 30, 2022, we had a total of $355.1 million of variable rate borrowings outstanding.
−Removed: Holding other factors constant and absent the interest rate swap agreements described above, a hypothetical 1% change in our borrowing rates would result in a $3.6 million change in our annual interest expense based on our variable rate debt at June 30, 2022.
−Removed: The following table presents the future principal payment obligations, interest payments, and fair values associated with the Company’s debt instruments assuming the Company’s actual level of variable rate debt as of June 30, 2022 (in thousands).
+Added: At December 31, 2022, we had a total of $426.9 million of variable rate borrowings outstanding.
+Added: Holding other factors constant and absent the interest rate swap agreements described above, a hypothetical 1% change in our borrowing rates would result in a $4.3 million change in our annual interest expense based on our variable rate debt at December 31, 2022.
+Added: The following table presents the future principal payment obligations, interest payments, and fair values associated with the Company’s debt instruments assuming the Company’s actual level of variable rate debt as of December 31, 2022 (unaudited, in thousands).
For the Fiscal Year Ending September 30, Fair
−Removed: 2022 2023 2024 2025 2026 Thereafter Total Value
+Added: 2023 2024 2025 2026 2027 Total Value
Debt obligations
−Removed: Term Loan $ 3,125 $ 12,500 $ 12,500 $ 15,625 $ 18,750 $ 187,500 $ 250,000 $ 250,000
−Removed: Revolving Credit Facility — — — — — 105,100 105,100 105,100
+Added: Term Loan Principal Payments $ 9,375 $ 13,438 $ 17,188 $ 20,625 $ 208,125 $ 268,750 $ 268,750
+Added: Revolving Credit Facility Principal Payments — — — — 158,100 158,100 158,100
Interest payments (1)
18,864 24,489 23,652 22,504 16,075
−Removed: (1) Represents projected interest payments using a SOFR-based floating rate of 3.50%.
−Removed: The notional amount of the Company’s outstanding interest rate swap contracts at June 30, 2022 was $192.2 million.
−Removed: The maturity dates of outstanding interest rate swap contracts range from October 2024 to June 2026.
−Removed: The fair value of outstanding interest rate swap contracts was $12.6 million as of June 30, 2022.
−Removed: See also Note 15 - Investment in Derivative Instruments, Note 16 - Fair Value Measurements, and Note 19 - Subsequent Events to the unaudited consolidated financial statements included in this report.
+Added: (1) Represents projected interest payments using the Company’s December 2022 SOFR-based floating rate of 5.94 per annum%.
+Added: The notional amount of the Company’s outstanding interest rate swap contract at December 31, 2022 was $300.0 million.
+Added: The maturity date of this swap is June 30, 2027, and the fair value of the outstanding swap contract was $23.4 million as of December 31, 2022.
+Added: also Note 15 - Investment in Derivative Instruments and Note 16 - Fair Value Measurements to the unaudited consolidated financial statements included elsewhere in this report.
Inflation Risk
−Removed: We are subject to the effects of inflation through wage pressures, increases in the cost of raw materials used to produce HMA, and increases in the costs of other items, such as fuel, concrete and steel.
−Removed: During the quarter ended June 30, 2022, we continued to experience an upward trend in several of these inflation-sensitive items.
+Added: We are subject to the effects of inflation through wage pressures, increases in the cost of raw materials used to produce HMA, and increases in other items, such as fuel, concrete and steel.
+Added: During the quarter ended December 31, 2022, we continued to experience increased costs in several of these inflation-sensitive items.
We seek to recover increasing costs by obtaining higher prices for our products or by including the anticipated price increases in our bids.
−Removed: Due to the relatively short-term duration of our construction contracts, we are generally able to reduce our exposure to price increases on new contracts, but we are limited in our ability to pass
−Removed: through increased costs for projects already in our backlog.
+Added: Due to the relatively short-term duration of our construction contracts, we are generally able to reduce our exposure to price increases on new contracts, but we are limited in our ability to pass through increased costs for projects already in our backlog.
Going forward, continued cost inflation in these areas may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.