Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (November 2019)
28 slides from Arcosa's investor presentation, Nov 1, 2019
Slide 1: Investor Presentation November 2019
Exhibit 99.1 Investor Presentation November 2019
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 Inc.’s (“Arcosa”, or the “Company”) estimat
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 — Investor Presentation, November 2019
Slide 4: Agenda
Agenda Company overview Financial highlights ESG update 4 / Moving Infrastructure Forward — Investor Presentation, November 2019
Slide 5: Arcosa at a Glance
Arcosa at a Glance A new public company with an established operating history and financial strength $1.78B $235M $107M Revenue Adjusted EBITDA Net Income 3 ~5,800 85+ Infrastructure-related Employees Years of Operating History Segments Arcosa separated from its former parent company and became an i
Slide 6: Arcosa Overview
Arcosa Overview Provider of infrastructure-related products and solutions positioned for growth Markets CONSTRUCTION ENERGY TRANSPORTATION Revenues $403M $831M $436M Adj.Segment 21% 15% EBITDA 14% Margin AGGREGATES WIND TOWERS BARGES SPECIALTY UTILITY COMPONENTS MATERIALS STRUCTURES CONSTRUCTION STO
Slide 7: Construction Products Segment Overview
Construction Products Segment Overview PRODUCTS KEY FIGURES REVENUE (LTM 9/30/2019) by product type ($M) Construction $403M site support SPECIALTY CONSTRUCTION Revenue AGGREGATES MATERIALS SITE SUPPORT 73 (18%) 74 Natural sand, gravel Lightweight Steel & aluminum 21% trench shoring and limestone bas
Slide 8: Energy Equipment Segment Overview
Energy Equipment Segment Overview PRODUCTS KEY FIGURES REVENUE (LTM 9/30/2019) by product type ($M) Storage tanks $831M and other WIND TOWERS UTILITY STRUCTURES Revenue 206 (25%) Storage 15% 625 Adjusted Segment EBITDA (75%) Margin RESIDENTIAL/COMMERCIAL/ INDUSTRIAL SCALE & FIELD AGRICULTURAL ERECTE
Slide 9: Transportation Products Segment Overview
Transportation Products Segment Overview PRODUCTS KEY FIGURES REVENUE (LTM 9/30/2019) by product type ($M) $436M Barges FIBERGLASS TANK BARGES HOPPER BARGES Revenue COVERS 195 (45%) 14% 240 Adjusted Segment EBITDA (55%) RAILCAR INDUSTRIAL & Margin RAILCAR AXLES COUPLING MINING DEVICES COMPONENTS $5B
Slide 10: First Year Progress
First Year Progress We celebrated our one year anniversary as a public company on November 1st and remain encouraged by our progress and focused on the future Building our new Arcosa culture Executing on our Stage 1 Priorities Grow Acquired ACG Materials + 3 additional Construction complementary a
Slide 11: Long-Term Vision for Arcosa
Long-Term Vision for Arcosa Integrate Environmental, Social, Improve and Governance Reduce long-term returns initiatives (ESG) into our the complexity and on invested capital long-term strategy Grow cyclicality of the overall in attractive markets business where we can achieve sustainable competitiv
Slide 12: Agenda
Agenda Company overview Financial highlights ESG update 12 / Moving Infrastructure Forward — Investor Presentation, November 2019
Slide 13: Third Quarter 2019 Financial Results
Third Quarter 2019 Financial Results Reported strong year-over-year growth across key metrics 3rd Quarter, ended September 30 ($M’s) Year-to-Date, ended September 30 ($M’s) Adjusted Adjusted Revenues Net Income Revenues Net Income EBITDA EBITDA +18% +35% +40% +19% +35% +33% 445.0 33.0 64.9 1,290.0 9
Slide 14: ACG Acquisition Update
ACG Acquisition Update Integration is progressing well and; ACG will be a platform for additional value creation in our Construction Products segment Levers for additional value Geographic diversity End market diversity creation ACG Footprint Aggregate mines ACG End Markets Production facilities End
Slide 15: Barge Recovery Continues
Barge Recovery Continues Recent orders have been strong and production ramp up is on track . Barge backlog up 58% year-to- Inland Barge business date Backlog Value Trend ($millions) . Year-to-date orders of $327M, 565 representing a book-to-bill ratio of 1.7 times 454 . More than half of Q3 orders 4
Slide 16: 2019 Revenue and Adjusted EBITDA Guidance
2019 Revenue and Adjusted EBITDA Guidance We expect to be at the high end of our Adjusted EBITDA guidance range of $230-$240 million Revenue Guidance Adjusted EBITDA Guidance $M’s $M’s +26% +22% 230-240 1,750 – 1,800 1,460 187 2018 2019 Guidance 2018 2019 Guidance Maintained Maintained See Adjusted
Slide 17: Cash Flow and Liquidity Highlights
Cash Flow and Liquidity Highlights We have the liquidity to fund our disciplined growth plans Cash Flow and Balance Sheet Highlights Available Liquidity at end of Q3 ($M’s) 389 .$219M of YTD September 2019 Operating Cash Flow Cash 128 .$108M of debt at end of Q3, substantially all at a fixed rate of
Slide 18: Capital Allocation
Capital Allocation We have continued to follow a disciplined approach to allocate capital across organic investments, acquisitions, and return to shareholders Return of capital Organic investments Acquisitions to shareholders . $61M of Capital Expenditures YTD . $31M of acquisitions YTD: . As of 3Q1
Slide 19: Agenda
Agenda Company overview Financial highlights ESG update 19 / Moving Infrastructure Forward — Investor Presentation, November 2019
Slide 20: ESG Update
ESG Update We recently completed a Materiality Assessment that identified ESG topics that will be integrated into our long-term strategy Our Our People & Our Environment Products Communities Employee Health and Safety Energy Management Product Use and Quality Diversity Air Quality Talent Management
Slide 21: Incentive Compensation Plans
Incentive Compensation Plans Arcosa’s incentive plans align compensation to long-term shareholder value creation while driving accountability to the business level Award Type Focus Performance Objectives Target CEO Pay: 83% at Risk(1) Adjusted EBITDA Short Term Cash 1 year operational and Incentive
Slide 22: Additional ESG Information
Additional ESG Information We have a number of initiatives already underway to integrate ESG into our long term strategy Our Our People & Our Environment Products Communities . Safety Excellence program rolled out to . Instituting sustainability program to track . Leading producer of wind towers for
Slide 23: Our Products
Our Products Arcosa’s products are used in important environmentally friendly industries Barge transportation is a clean, efficient mode of freight Wind Energy reduces carbon dioxide emissions transportation Tons of CO2 per Million Ton Miles CO2 Emissions Avoided through Wind Energy Million Metric T
Slide 24: Appendix
Appendix
Slide 25: Reconciliation of Consolidated and Combined Adjusted EBITDA
Reconciliation of Consolidated and Combined Adjusted EBITDA ($’s in Millions) Three Months Ended Nine Months Ended Full Year (unaudited) September 30, September 30, 2019 Guidance 2019 2018 2019 2018 Low High Revenues $ 445.0 $ 378.6 $ 1,290.0 $ 1,086.0 $ 1,750.0 $ 1,800.0 Net Income 32.7 3.2 92.2 48
Slide 26: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ($’s in Millions) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net Income $ 32.7 $ 3.2 $ 92.2 $ 48.0 Impairment charge on businesses subsequently divested - 23.2 - 23.2 Tax impact - (1.2) - (1.2) Impact of the
Slide 27: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in Millions) Three Months Ended Nine Months Ended Last Twelve Months Year Ended September 30, September 30, September 30, December 31, (unaudited) 2019 2018 2019 2018 2019 2018 Construction Products Revenues $ 115.9 $ 72.6 $ 337.5 $ 226.7 $ 403.1 $ 292.
Slide 28: Adjusted ACG EBITDA reconciliation
Adjusted ACG EBITDA reconciliation ($’s in Millions) (unaudited) For the Trailing Twelve Months Ended August 31, 2018: Revenues $152.0 Net Income (1.8) Add: Interest expense 16.6 Provision (benefit) for income taxes (3.9) Depreciation, depletion, and 15.4 amortization expense EBITDA $26.3 Add: Other