Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (May 2021)
36 slides from Arcosa's investor presentation, May 4, 2021
Slide 1: Investor Presentation May 2021
Investor Presentation May 2021 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 Long-Term Vision and Capital Allocation ESG Update Moving Infrastructure Forward 2 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 Strong 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 priorit
Slide 7: Arcosa at a Glance
/7 Arcosa at a Glance Revenues, Adjusted EBITDA and Net Income are for the twelve months ended 3/31/2021. See Adjusted EBITDA reconciliation in Appendix. Arcosa spun off from its former parent company in November 2018. $91M Net Income $265M Adjusted EBITDA $1.9B Revenues 3 Infrastructure-related Seg
Slide 8: Business Overview
/ Business Overview 8 Revenues ENGINEERED STRUCTURES TRANSPORTATION CONSTRUCTION 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 SITE SUPPORT WIND
Slide 9: Track Record of Executing on Stage 1 Priorities in First 2.5 Years
/9 Track Record of Executing on Stage 1 Priorities in First 2.5 Years Building our new Arcosa culture Executing on Stage 1 Priorities introduced at October 2018 Investor Day Grow Construction Products Improve Engineered Structures margins Expand Transportation Products Operate a flat corporate struc
Slide 10: StonePoint Materials Highlights
/ StonePoint Materials Highlights Moving Infrastructure Forward 10 We completed the acquisition on April 9 and are now focused on integration and continuing to grow our expanded aggregates platform ~$125M Projected 2021 Revenues ~$30M Projected 2021 Adj. EBITDA 9M+ Tons Produced Annually 40+ Years o
Slide 11: Attractive and Complementary Geographic Presence
/ Attractive and Complementary Geographic Presence Moving Infrastructure Forward 11 Acquisition expands Arcosa’s Construction Materials operations in the Gulf Coast as well as into attractive new markets Gulf Coast Louisiana: New Orleans, Baton Rouge, Lafayette, and Lake Charles Texas: Houston
Slide 12: Construction Materials Platform Represents ~50% of Adjusted EBITDA
/12 Construction Materials Platform Represents ~50% of Adjusted EBITDA StonePoint enhances the scale of our constructions materials platform and accelerates the shift to a higher margin, more stable portfolio Moving Infrastructure Forward 1LTM 3/31 Pro-Forma Adjusted EBITDA incorporates 12 months of
Slide 13: Financial Highlights
/13 2 Financial Highlights Moving Infrastructure Forward
Slide 14: Recent Financial Results
/14 1,704 1,462 1,460 1,737 1,936 2018 20192016 2017 2020 +33% Recent Financial Results Full Year 2020 Adjusted EBITDA increased 52% since spin outpacing revenue growth and driven by organic expansion, acquisitions, and operating improvements 267 197 187 241 284 2016 20192017 20202018 +52% See Adjus
Slide 15: Cash Flow and Balance Sheet Strength
/ Cash Flow and Balance Sheet Strength Arcosa’s businesses have an attractive free cash flow profile, contributing to a strong balance sheet 15 Note: Free Cash Flow defined as GAAP Operating Cash Flow less GAAP capital expenditures. See reconciliation in Appendix Moving Infrastructure Forward Long-t
Slide 16: 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 guideli
Slide 17: Q1-2021 Financial Results
/ Q1-2021 Financial Results Moving Infrastructure Forward17 488.2 440.4 Q1-20 Q1-21 -10% 75.6 56.5 Q1-21Q1-20 -25% See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix. Revenues and Adjusted EBITDA were ahead of our expectations; strength in Construction Products was offset by yea
Slide 18: Near-Term Outlook
/18 Near-Term Outlook Construction Products and Engineered Structures end markets have remained healthy throughout the pandemic, while the barge market has been most impacted Moving Infrastructure Forward 50% 31% 19% Construction Products Positive Outlook Robust construction activity in our key
Slide 19: 2021 Outlook
/ 2021 Outlook After closing the StonePoint Materials acquisition in April, we are updating our Revenue and Adjusted EBITDA guidance Moving Infrastructure Forward19 See Adjusted EBITDA reconciliation in Appendix. Revenues $M’s Adjusted EBITDA $M’s 1,460 1,737 1,936 Updated 2021 Guidance 2018 1,880 –
Slide 20: Long-Term Vision and Capital Allocation
/20 3 Long-Term Vision and Capital Allocation Moving Infrastructure Forward
Slide 21: Our Long-Term Vision
/21 Our 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-term
Slide 22: Repositioning Arcosa Around More Stable Infrastructure Products
/22 Repositioning Arcosa Around More Stable Infrastructure Products Construction Products 2018 LTM March 2021 Our performance highlights our progress in creating a more stable base of revenue and profit, anchored around core infrastructure products Moving Infrastructure Forward Natural aggregates
Slide 23: Construction Products Acquisition Strategy
/ 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 24: Engineered Structures Acquisitions
/24 Traffic structures March 2020 acquisition of HSI, a leading traffic structures manufacturer October 2020 acquisition of Premier Fabricators 2 plants in Florida; serve Southeast and opportunity to expand into other states DESCRIPTION Telecom structures Transmission and Distribution structur
Slide 25: Engineered Structures End Markets and Product Lines
/25 Moving Infrastructure Forward Engineered Structures With our acquisitions, we have expanded our product offering in the $3B transmission and distribution markets, as well as entered new large markets tied to infrastructure growth Transmission & Distribution Structures Wind Towers Traffic Structu
Slide 26: ESG Update
/26 4 ESG Update Moving Infrastructure Forward
Slide 27: Arcosa Sustainability
/ Arcosa Sustainability Moving Infrastructure Forward27 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 of the
Slide 28: Materiality Assessment and Reportable Metrics
/28 We are committed to developing reportable metrics and establishing meaningful goals in areas important to our stakeholders Our Materiality Assessment was based primarily on SASB standards, with additional input from stakeholders and other sustainability standards, including TCFD Employee Health
Slide 29: Long-term Vision: ESG Update
/ Long-term Vision: ESG Update Moving Infrastructure Forward29 As we integrate ESG initiatives into our long-term strategy, our operations teams have taken an active role in pursuing initiatives that promote environmental responsibility We provide more detail regarding our goals and initiatives in o
Slide 30: Our Products Are Used in Environmentally Friendly Industries
/30 Our products are used in important, environmentally friendly industries Arcosa operates in multiple industries which contribute to environmental protection Arcosa Wind Towers produces steel towers to support our customers’ advancement of America’s wind energy infrastructure. Arcosa Marine builds
Slide 31: Appendix
Appendix
Slide 32: Additional Financial Guidance for 2021
/32 Additional Financial Guidance for 2021 Corporate costs Commentary Moving Infrastructure Forward Capital expenditures Working capital ~$13-14M per quarter, excluding non-recurring items related to acquisitions and integration We expect ~$6M of acquisition and integration-related costs in Q2 d
Slide 33: Non-GAAP Measures
/ Non-GAAP Measures 33 Moving Infrastructure Forward “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”). GAAP does not define EBITDA o
Slide 34: Reconciliation of Adjusted EBITDA and Adjusted Net Income
/ Reconciliation of Adjusted EBITDA and Adjusted Net Income 34 Moving Infrastructure Forward (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) For the three months ended March 31, 2021 and 2020, expenses associated with a
Slide 35: Adjusted Segment EBITDA Reconciliation
/ Twelve Months Ended March 31, 2021 2020 2021 Construction Products Operating Profit $ 15.8 $ 16.8 $ 73.7 Add: Depreciation, depletion, and amortization expense 17.1 13.8 63.4 Segment EBITDA 32.9 30.6 137.1 Add: Impact of acquisition-related expenses(1) - 1.5 1.4 Add: Impairment charge - - 0.8 Adju
Slide 36: Reconciliation of Free Cash Flow and Net Debt to Adjusted EBITDA
/ Reconciliation of Free Cash Flow and Net Debt to Adjusted EBITDA 36 Moving Infrastructure Forward ($’s in millions) (unaudited) (1) Net Debt adjusted to include $200.0 million of cash received from Trinity in connection with the spin-off on November 1, 2018 (2) Adjusted EBITDA includes 9 month pro