Arcosa, Inc. · NYSE:ACA
Arcosa — Q1 2021 Earnings Presentation
24 slides from Arcosa's earnings presentation, Apr 30, 2021
Slide 1: First Quarter 2021 Earnings Conference Call
First Quarter 2021 Earnings Conference Call April 30, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some statements in this presentation, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Arcosa’s estimates, expectations, beliefs, intenti
Slide 3: How to Find Us
How to Find Us OUR WEBSITE NYSE TICKER www.arcosa.com ACA HEADQUARTERS INVESTOR CONTACT Arcosa, Inc. InvestorResources@arcosa.com 500 North Akard Street, Suite 400 Dallas, Tx 75201 3 / Moving Infrastructure Forward
Slide 4: Key messages from today's call
Key messages from today’s call ▪ Q1-2021 results were ahead of expectations on strong Construction Products performance ̶ Construction activity remains robust, particularly in our key Texas markets ̶ We finished the quarter with strong momentum across our businesses as better weather in March helped
Slide 5: Arcosa's Value Proposition
Arcosa’s Value Proposition Leading Experienced Strong balance Disciplined capital Track record of businesses management sheet and ample allocation process executing on serving critical team with history liquidity to to grow in strategic priorities infrastructure of managing navigate cycles attractiv
Slide 6: Q1 2021 Results
1 Q1 2021 Results 6 / Moving Infrastructure Forward
Slide 7: Q1-2021 Financial Results
Q1-2021 Financial Results Revenues and Adjusted EBITDA were ahead of our expectations; strength in Construction Products was offset by year-over-year weakness in Transportation Products Revenues Net Income Adjusted Adjusted EBITDA ($M) ($M) ($M) -10% 488.2 440.4 -25% 75.6 -49% 34.4 56.5 2.8 17.6 31.
Slide 8: Segment Results: Construction Products
Segment Results: Construction Products Adjusted Segment EBITDA was roughly flat vs. the first quarter of 2020, despite the significant impact from Winter Storm Uri Revenues Aggregates & Specialty Materials Adjusted Segment EBITDA ($M) Construction Site Support ($M) +2% +3% 32.1 32.9 149.4 153.2 17.3
Slide 9: Segment Results: Engineered Structures
Segment Results: Engineered Structures Revenues declined primarily due to lower wind tower deliveries, and margins were compressed from a number of factors Revenues Adjusted Segment EBITDA ($M) Utility, Wind Towers, and Related Structures ($M) Storage Tanks and Other -21% -7% 33.6 223.2 207.0 46.8 2
Slide 10: Segment Results: Transportation Products
Segment Results: Transportation Products Adjusted Segment EBITDA declined primarily from lower barge revenue, but we maintained margins above 10% despite operating well below capacity Revenues Adjusted Segment EBITDA ($M) Barges ($M) Rail Components -31% 117.0 28.0 -53% 18.7 80.2 22.3 89.0 8.7 57.9
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights Our net debt / Adjusted EBITDA was 1.9x after issuing $400M of senior notes at 4.375% to fund the StonePoint acquisition Net Debt / Adjusted EBITDA Debt Maturity Schedule Ratio at end of quarter $ Millions Long term target of 2.0 -2.5x 1.9 400 220 0.5 0.6 4 8 8 8 -0.1 2021 2
Slide 12: Updated 2021 Outlook
2 Updated 2021 Outlook 12 / Moving Infrastructure Forward
Slide 13: StonePoint Materials Highlights
StonePoint Materials Highlights We completed the acquisition on April 9 and are now focused on integration and continuing to grow our expanded aggregates platform StonePoint Key Figures Operations Strategic Rationale Limestone ✓ Premier, scaled aggregates platform that ▪ 3 quarries in ~$125M ~$30M T
Slide 14: Near-Term Outlook
Near-Term Outlook Construction Products and Engineered Structures end markets have remained healthy throughout the pandemic, while the barge market has been most impacted Near-Term Outlook by Segment Engineered Structures % of TTM Adjusted EBITDA, Pro-Forma for StonePoint ▪ Positive Outlook (excludi
Slide 15: 2021 Outlook
2021 Outlook After closing the StonePoint Materials acquisition in April, we are updating our Revenue and Adjusted EBITDA guidance Revenues Adjusted EBITDA $M’s $M’s 1,936 1,780 – 1,880 – 2,000 284 270-290 1,900 250-270 1,737 241 1,460 187 2018 2019 2020 Original Updated 2018 2019 2020 Original Upda
Slide 16: Arcosa Sustainability
Arcosa Sustainability We continue to integrate ESG into our business through our strategic planning process, ESG-focused initiatives, and innovative continuous improvement projects Safety: Arcosa team members achieved a 56% reduction in our Total Recordable Incident Rate (TRIR) in 2020. Our ARC 100
Slide 17: COVID-19 Update
COVID-19 Update We prioritize the health and safety of our people The health and safety of our employees, communities, and other stakeholders is our highest priority. We have put safeguard measures in place at our plants and office locations to meet or exceed the standards set forth by CDC guideline
Slide 18: Arcosa's Long-Term Vision
Arcosa’s Long-Term Vision Grow in attractive markets Reduce the complexity Improve long-term Integrate Environmental, where we can achieve and cyclicality of the returns on invested Social, and Governance sustainable competitive overall business capital initiatives (ESG) into our advantages long-ter
Slide 19: Appendix
Appendix
Slide 20: Additional Financial Guidance for 2021
Additional Financial Guidance for 2021 Commentary Corporate ▪ ~$13-14M per quarter, excluding non-recurring items related to acquisitions and integration costs ▪ We expect ~$6M of acquisition and integration-related costs in Q2 due to the April StonePoint closing, followed by $2M per quarter in Q3 a
Slide 21: Non-GAAP Measures
Non-GAAP Measures Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. We adjust EBITDA for certain items that are not reflective of the normal earnings of our business (“Adjusted EBITDA”). GAA
Slide 22: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income ($’s in millions) (unaudited) Three Months Ended Full Year 2021 March 31, Guidance 2021 2020 Low High Net income $ 15.9 $ 31.6 $ 80.0 $ 96.0 Add: Interest expense, net 2.1 3.1 20.0 20.0 Provision for income taxes 4.4 10.4 24.0 28.0 (1) Deprec
Slide 23: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in millions) (unaudited) Three Months Ended March 31, 2021 2020 Construction Products Operating Profit $ 15.8 $ 16.8 Add: Depreciation, depletion, and amortization expense 17.1 13.8 Segment EBITDA 32.9 30.6 (1) Add: Impact of acquisition-related expense
Slide 24: Reconciliation of Net Debt to Adjusted EBITDA
Reconciliation of Net Debt to Adjusted EBITDA ($’s in millions) (unaudited) As of Pro Forma for March 31, March 31, March 31, StonePoint and March 31, 2021 2019 2020 (1) 2021 (2) Senior Notes (3) Pro Forma Total debt $ 105.1 $ 356.9 $ 255.9 $ 400.0 $ 655.9 Cash and cash equivalents 118.0 200.7 81.9