Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (March 2022)
30 slides from Arcosa's investor presentation, Mar 11, 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022 Exhibit 99.1
Slide 2: Forward-Looking Statements
/ Moving Infrastructure Forward2 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 estimate
Slide 3: How to Find Us
/ How to Find Us 3 INVESTOR CONTACT InvestorResources@arcosa.com NYSE TICKER ACA OUR WEBSITE www.arcosa.com HEADQUARTERS Arcosa, Inc. 500 North Akard Street, Suite 400 Dallas, Tx 75201 Moving Infrastructure Forward
Slide 4: Table of Contents
/4 1 3 4 Company Overview 2022 Outlook ESG Update Moving Infrastructure Forward 2 Recent Financial Highlights Table of Contents
Slide 5: Company Overview
/5 1 Company Overview Moving Infrastructure Forward
Slide 6: Arcosa's Value Proposition
/6 Arcosa’s Value Proposition Healthy balance sheet and ample liquidity to navigate cycles and pursue strategic growth Experienced management team with history of managing through economic cycles Leading businesses serving critical infrastructure markets Track record of executing on strategic priori
Slide 7: Arcosa at a Glance
/7 Arcosa at a Glance Revenues, Net Income, and Adjusted EBITDA are for the fiscal year ended 12/31/2021. See Adjusted EBITDA reconciliation in Appendix Arcosa spun off from its former parent company in November 2018. $70M Net Income $283M Adjusted EBITDA $2.0B Revenues 3 Infrastructure-related Segm
Slide 8: Business Overview
/ Business Overview 8 Revenues ENGINEERED STRUCTURES TRANSPORTATION PRODUCTS CONSTRUCTION PRODUCTS Segments Adj.Segment EBITDA & Margin Arcosa’s three segments are made up of leading businesses that serve critical infrastructure markets NATURAL & RECYCLED AGGREGATES SPECIALTY MATERIALS CONSTRUCTION
Slide 9: Today, Arcosa is a less cyclical and more resilient company
/ Adjusted EBITDA, excluding Corporate ($M) Today, Arcosa is a less cyclical and more resilient company Moving Infrastructure Forward9 73 (33%) FY 2021 195 (57%) FY 2018 At Spin 64 (29%) 82 (38%) 24 (7%) 125 (36%) Transportation Products Engineered Structures Construction Products 219 344 See Adjust
Slide 10: Growing our Construction Products Platform
/ Attractive markets with long-term pricing and volume growth; less cyclical than other Arcosa businesses Sustainable competitive advantages, through reserve positions, product portfolio, proprietary processing capabilities, and deep market knowledge Fragmented industry structure with ability
Slide 11: Arcosa's Long-Term Vision
/11 Arcosa’s Long-Term Vision Grow in attractive markets where we can achieve sustainable competitive advantages Reduce the complexity and cyclicality of the overall business Improve long-term returns on invested capital Integrate Environmental, Social, and Governance initiatives (ESG) into our long
Slide 12: Recent Financial Highlights
/12 2 Recent Financial Highlights Moving Infrastructure Forward
Slide 13: Full Year 2021 Financial Results
/ Full Year 2021 Financial Results Moving Infrastructure Forward13 1,460 1,737 1,936 2,036 2020 20212018 2019 +39% 187 241 284 283 2018 2019 20212020 +51% See Adjusted EBITDA reconciliations in Appendix. Full Year 2021 Adjusted EBITDA increased 51% since spin outpacing revenue growth and driven by o
Slide 14: Cash Flow and Balance Sheet
/ Cash Flow and Balance Sheet 14 Moving Infrastructure Forward Net Debt / Adjusted EBITDA Ratio at end of quarter Free Cash Flow $M’s Leverage at Low End of Targeted RangeFree Cash Flow Strength Transportation Products segment generated $159M of Cash Flow from 2018 to 2020 that funded growth in othe
Slide 15: 2022 Outlook
/15 3 2022 Outlook Moving Infrastructure Forward
Slide 16: 2022 Total Company Outlook
/ 2022 Total Company Outlook The outlook for our growth businesses is strong and offsets cyclical challenges from wind towers, barge, and steel components Moving Infrastructure Forward16 See Adjusted EBITDA reconciliation in Appendix. Revenues $M’s Adjusted EBITDA $M’s 1,460 1,737 1,936 2,036 201920
Slide 17: Outlook for Growth Businesses
/ Outlook for Growth Businesses Moving Infrastructure Forward17 Since 2018, we have made significant progress in expanding our Growth Businesses Expect ~15% Increase in Adjusted EBITDA from Growth Businesses in 2022 … 90 157 205 277 320129 127 127 51 23 2018 At Spin 2019 20212020 Mid-Point 2022 Guid
Slide 18: Cyclical Businesses
/ 0 500 1000 1500 2000 12/1212/08 12/1812/10 12/14 12/16 12/2212/20 $ / S h o rt T o n 830 Hist.avg. since ‘08 Cyclical Businesses Moving Infrastructure Forward18 In 2022, our cyclical businesses are expected to be at <20% of their combined 2018 Adjusted EBITDA levels, but we remain confident in lon
Slide 19: Well-positioned to benefit from ~$1 trillion Infrastructure Investment and Jobs Act
/ We believe our businesses are well-positioned to benefit from ~$1 trillion Infrastructure Investment and Jobs Act Moving Infrastructure Forward19 • Reauthorization of the Fixing America’s Surface Transportation Act (FAST Act) at a higher level of spending through 2026 • Spending catalysts to Arcos
Slide 20: ESG Update
/20 4 ESG Update Moving Infrastructure Forward
Slide 21: Long-term Vision: ESG Update
/ Long-term Vision: ESG Update Moving Infrastructure Forward21 We continue to integrate ESG into our business through our strategic planning process, ESG-focused initiatives, and innovative continuous improvement projects Our 2020 Sustainability Report published on April 19, 2021 highlights a number
Slide 22: We continue to make progress on our ESG journey
/ We continue to make progress on our ESG journey Moving Infrastructure Forward22 2020 ESG Highlights For Arcosa, building a culture of ESG starts with foundational steps achieved through stakeholder engagement, cross-functional collaboration, and planning Increased female Board of Director represen
Slide 23: Appendix
Appendix
Slide 24: Additional Financial Guidance for 2022
/24 Additional Financial Guidance for 2022 Corporate costs Commentary Moving Infrastructure Forward Capital expenditures Working capital ~$13-14M per quarter, excluding one-time items related to acquisitions and integration $120-140M in 2022, including $30-50M of growth projects Tax Rate We co
Slide 25: Non-GAAP Measures
/ Non-GAAP Measures 25 Moving Infrastructure Forward “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our business. GAAP does not defi
Slide 26: Reconciliation of Adjusted EBITDA
/ Reconciliation of Adjusted EBITDA 26 Moving Infrastructure Forward (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions, including the cost impact of the fair value markup of acquired
Slide 27: Reconciliation of Adjusted Segment EBITDA
/ Reconciliation of Adjusted Segment EBITDA 27 Moving Infrastructure Forward ($’s in millions) (unaudited) (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions, including the cost impact
Slide 28: Reconciliation of Free Cash Flow and Net Debt to Adjusted EBITDA
/ Reconciliation of Free Cash Flow and Net Debt to Adjusted EBITDA 28 Moving Infrastructure Forward ($’s in millions) (unaudited) (1) These periods include pro forma adjustments for acquisitions completed during the period, as previously disclosed. (2) Adjusted EBITDA includes a 3 month pro forma ad
Slide 29: Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses
/ Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses 29 Moving Infrastructure Forward (in millions) (unaudited) Year Ended December 31, Full Year 2022 Guidance 2018 2019 2020 2021 Low High Consolidated Adjusted EBITDA(1) $ 186.5 $ 240.7 $ 283.7 $ 283.3 $ 280.0 $ 305.0 Add: Corporat
Slide 30: Reconciliation of Southwest Rock and StonePoint Pro Forma Adjusted EBITDA
/ Reconciliation of Southwest Rock and StonePoint Pro Forma Adjusted EBITDA 30 Moving Infrastructure Forward (in millions) (unaudited) (1) Pass-through entity and not subject to federal income taxes. (2) Includes Paycheck Protection Program loan forgiveness, partially offset by management compensati