Arcosa, Inc. · NYSE:ACA
Arcosa — Q1 2019 Earnings Presentation
19 slides from Arcosa's earnings presentation, May 3, 2019
Slide 1: First Quarter Earnings 2019
First Quarter Earnings 2019 May 3, 2019
Slide 2: 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 2 / Moving Infrastructure Forward
Slide 3: 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 4: Arcosa First Quarter 2019 Highlights
Arcosa First Quarter 2019 Highlights Strong start to year with Q1 revenue growth of 16% and adjusted EBITDA growth of 21% Results demonstrate continued progress on Stage 1 Priorities Integration of ACG Materials continues to progress well Order activity remained strong, particularly for liquid barge
Slide 5: First Quarter 2019 Financial Results
First Quarter 2019 Financial Results Strong year-over-year growth across key metrics Revenues Net Income Adjusted EBITDA $M’s $M’s $M’s +25% +21% +16% 27.7 58.5 410.9 354.4 48.3 22.2 Q1-18 Q1-19 Q1-18 Q1-19 Q1-18 Q1-19 Margin 13.6% 14.2% See Adjusted EBITDA reconciliation in Appendix. 5 / Moving Inf
Slide 6: Construction Products: First Quarter Highlights
Construction Products: First Quarter Highlights Provides multiple platforms for both organic and acquisition growth ▪ ACG acquisition brings expanded geographic footprint and specialty product expertise ▪ ACG’s Q1 results in-line with expectations; adjusted EBITDA margin is accretive to Arcosa conso
Slide 7: Energy Equipment: First Quarter Highlights
Energy Equipment: First Quarter Highlights Organic programs paying off in margin expansion ▪ Strong first quarter operating results ▪ Starting to see early signs of operational improvements ▪ Wind tower margins maintained; currently quoting orders for 2020 ▪ Turnaround in Mexican operation underway
Slide 8: Transportation Products: First Quarter Highlights
Transportation Products: First Quarter Highlights Strong quarter of barge orders continue building our backlog ▪ Barge business continued to build backlog, primarily for liquid barges ▪ Exceptionally strong quarter of barge orders (4.1 book-to bill) that reflected solid demand and the finalization o
Slide 9: Segment Results: Construction Products
Segment Results: Construction Products First Quarter 2019 vs. First Quarter 2018 Revenues Adjusted Segment EBITDA $M’s $M’s +51% +23% 106.0 21.5 17.6 17.5 70.2 Construction 17.6 Site Support 88.4 Aggregates & 52.6 Specialty Materials Q1-18 Q1-19 Q1-18 Q1-19 Margin 24.9% 20.3% See Adjusted Segment EB
Slide 10: Segment Results: Energy Equipment
Segment Results: Energy Equipment First Quarter 2019 vs. First Quarter 2018 Revenues Adjusted Segment EBITDA $M’s $M’s +7% +39% 209.1 35.2 196.3 50.5 Storage Tanks 48.8 25.3 & Other Includes $2.9M 158.6 recovery of bad Wind Towers & 147.5 debt expense Utility Structures Q1-18 Q1-19 Q1-18 Q1-19 Margi
Slide 11: Segment Results: Transportation Products
Segment Results: Transportation Products First Quarter 2019 vs. First Quarter 2018 Revenues Adjusted Segment EBITDA $M’s $M’s +9% -8% 97.5 13.2 89.3 12.1 30.8 49.4 Barges Includes $1.8M of Madisonville barge facility startup costs and additional 58.5 Components 48.1 impact from Caruthersville barge
Slide 12: Solid Cash Flow Generation during First Quarter
Solid Cash Flow Generation during First Quarter Strong cash flow led to $371M of available liquidity Q1 2019 Operating Cash Flow ($M’s) Available Liquidity at end of Q1 ($M’s) Net Income 28 371 ▪ Repaid $80 million of Depreciation, depletion, and 20 Cash 118 advances under $400 amortization million
Slide 13: Reaffirming 2019 Guidance on Continued Confidence
Reaffirming 2019 Guidance on Continued Confidence 18% Adjusted EBITDA growth expected in 2019 at mid-point of guidance range Full Year Revenues ($M’s) Full Year Adjusted EBITDA ($M’s) Organic growth and ACG acquisition more than offset headwinds from incremental public company costs and lower margin
Slide 14: Capital Allocation Priorities
Capital Allocation Priorities We continue to follow a balanced approach to capital allocation while being disciplined on acquisitions Return of capital Organic investments Acquisitions to shareholders ▪ Capital Expenditures of $18M during ▪ We have a number of opportunities ▪ Repurchased ~$8 million
Slide 15: 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 16: Appendix
Appendix
Slide 17: Reconciliation of Consolidated and Combined Adjusted EBITDA
Reconciliation of Consolidated and Combined Adjusted EBITDA (in millions) (unaudited) Three Months Ended Full Year March 31, 2019 Guidance 2019 2018 Low High Revenues $410.9 $354.4 $1,700.0 $1,800.0 Net Income 27.7 22.2 85.0 98.0 Add: Interest expense, net 1.6 -- 7.0 5.0 Provision (benefit) for inco
Slide 18: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA (in millions) (unaudited) Three Months Ended March 31, 2019 2018 Construction Products Revenues $106.0 $70.2 Operating Profit 11.3 12.4 Add: Depreciation, depletion, and amortization 8.8 5.1 “Segment EBITDA” is defined as segment operating profit plus deprec
Slide 19: Reconciliation of Adjusted Net Income and Adjusted Diluted EPS
Reconciliation of Adjusted Net Income and Adjusted Diluted EPS (in millions) (unaudited) Three Months Ended March 31, 2019 2018 Net Income $27.7 $22.2 Impact of the fair value mark up of acquired inventory 1.4 -- Tax impact (0.3) -- Adjusted Net Income $28.8 $22.2 GAAP does not define “Adjusted Net