Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (November 2022)
32 slides from Arcosa's investor presentation, Nov 8, 2022
Slide 1: Moving Infrastructure Forward: November 2022 Investor Presentation
MOVING INFRASTRUCTURE FORWARD | November 2022 Investor Presentation Exhibit 99.1
Slide 2: Forward Looking Statements
2 I MOVING INFRASTRUCTURE FORWARD I 2022 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
Slide 3: Table of Contents
01 03 04 COMPANY OVERVIEW 2022 OUTLOOK ESG ACCOMPLISHMENTS 02 RECENT FINANCIAL HIGHLIGHTS TABLE OF CONTENTS 3 I MOVING INFRASTRUCTURE FORWARD I 2022
Slide 4: How to Find Us
HOW TO FIND US OUR WEBSITE www.arcosa.com NYSE TICKER ACA HEADQUARTERS Arcosa, Inc. 500 North Akard Street, Suite 400 Dallas, TX 75201 INVESTOR CONTACT InvestorResources@arcosa.com 4 I MOVING INFRASTRUCTURE FORWARD I 2022
Slide 5: Company Overview
COMPANY OVERVIEW 01
Slide 6: Arcosa's Value Proposition
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 prioritie
Slide 7: Arcosa at a Glance
ARCOSA AT A GLANCE Revenues, Net Income, and Adjusted EBITDA are for the twelve months ended 9/30/2022. See Adjusted EBITDA reconciliation in Appendix Arcosa spun off from its former parent company in November 2018. Net Income Adjusted EBITDA Infrastructure-related Segments Employees Years of Operat
Slide 8: Business Overview
BUSINESS OVERVIEW ENGINEERED STRUCTURES(1) TRANSPORTATION PRODUCTSCONSTRUCTION PRODUCTS (1) Arcosa completed the divestiture of its storage tanks business on October 3, 2022. Revenues and Adjusted Segment EBITDA and margin for the twelve months ended 9/30/2022. See Adjusted Segment EBITDA reconcilia
Slide 9: Arcosa's Long-Term Vision
ARCOSA’S LONG-TERM VISION 9 I MOVING INFRASTRUCTURE FORWARD I 2022 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 Gover
Slide 10: Strategic Transformation
10 I MOVING INFRASTRUCTURE FORWARD I 2022 STRATEGIC TRANSFORMATION Adjusted EBITDA, excluding Corporate ($M) LTM 9/30/22 203 (53%) 64 (29%) Transportation Products 82 (38%) 73 (33%) 22 (6%) 385 FY 2018 160 (41%) Engineered Structures Construction Products 219 See Adjusted Segment EBITDA reconciliati
Slide 11: Storage Tanks Business Divestiture
• Advances our long-term vision to reduce the complexity of Arcosa’s overall portfolio • Proceeds to be invested in our growth businesses as we continue to shift towards less cyclical, higher-margin opportunities • We prioritized improving the performance of the storage tanks business which was unpr
Slide 12: Growing Our Construction Products Platform
GROWING OUR CONSTRUCTION PRODUCTS PLATFORM Attractive markets with long-term pricing and volume growth; less cyclical than other Arcosa businesses Sustainable competitive advantages, through reserve positions, product portfolio, proprietary processing capabilities, and deep market knowledge Fr
Slide 13: Recent Financial Highlights
RECENT FINANCIAL HIGHLIGHTS 02
Slide 14: Recent Financial Results
14 I MOVING INFRASTRUCTURE FORWARD I 2022 RECENT FINANCIAL RESULTS See Adjusted Segment EBITDA reconciliation in Appendix. Strong performance and margin expansion since spin driven by acquisitions, organic growth, and operating improvements Margin 12.8% 13.9% Revenues ($M) Adjusted EBITDA ($M) 1,460
Slide 15: Cash Flow and Balance Sheet
15 I MOVING INFRASTRUCTURE FORWARD I 2022 CASH FLOW AND BALANCE SHEET Disciplined ‘cash culture’ and increased balance sheet flexibility post storage tanks divesture to support expansion through organic growth initiatives and opportunistic acquisitions (1.2) 0.5 (0.6) 0.5 2.1 2.0 1.9 1.0 Pro Forma a
Slide 16: Q3 2022 Consolidated Results
16 I MOVING INFRASTRUCTURE FORWARD I 2022 Q3 2022 CONSOLIDATED RESULTS See Adjusted Net Income and Adjusted EBITDA reconciliation in Appendix. Margin 14.7% 15.0% Revenues ($M) Adjusted EBITDA ($M) 559.1 603.9 Q3-21 Q3-22 +8% 82.0 90.8 Q3-22Q3-21 +11% 23.7 32.0 4.1 Q3-21 27.8 1.7 Q3-22 33.7 +21% Adju
Slide 17: 2022 Outlook
2022 OUTLOOK 03
Slide 18: Updated 2022 Outlook
18 I MOVING INFRASTRUCTURE FORWARD I 2022 Updated our Adjusted EBITDA guidance range to reflect the divestiture of the storage tanks business on October 3, 2022 See updated full year 2022 Revenue guidance and Adjusted EBITDA reconciliation in Appendix. • Expect full year 2022 Adjusted EBITDA growth
Slide 19: Outlook for 2022
19 I MOVING INFRASTRUCTURE FORWARD I 2022 90 157 205 277 341 129 127 127 51 34 FY-18 At Spin FY-19 332 284 FY-20 FY-21 Mid-Point FY-22 Guidance 219 375 329 +23% OUTLOOK FOR 2022 Adjusted EBITDA, excluding Corporate ($M) See reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses in Appe
Slide 20: Cyclical Businesses
84 90 17 18 81 16 55 49 13 105 35 48 1Q214Q202Q201Q204Q19 3Q20 3Q222Q21 4Q213Q21 1Q22 2Q22 20 I MOVING INFRASTRUCTURE FORWARD I 2022 CYCLICAL BUSINESSES In 2022, our cyclical businesses are expected to be at ~25% of their combined 2018 Adjusted EBITDA levels, but long-term fundamentals remain suppor
Slide 21: Infrastructure Spending
INFRASTRUCTURE SPENDING We believe our businesses are well-positioned to benefit from ~$1.4 trillion in expected spending from recent federal stimulus packages Infrastructure Investment and Jobs Act • Reauthorization of the Fixing America’s Surface Transportation Act (FAST Act) at a higher level of
Slide 22: ESG Accomplishments
ESG ACCOMPLISHMENTS 04
Slide 23: ESG Accomplishments
ESG ACCOMPLISHMENTS 23 I MOVING INFRASTRUCTURE FORWARD I 2022 We continue to take actions to integrate ESG in our long-term strategy and culture Arcosa Marine Products Joins Green Marine • Green Marine is the largest voluntary environmental certification program for North America’s maritime industry
Slide 24: Appendix
APPENDIX
Slide 25: Additional Financial Guidance for 2022
25 I MOVING INFRASTRUCTURE FORWARD I 2022 ADDITIONAL FINANCIAL GUIDANCE FOR 2022 CORPORATE COSTS COMMENTARY CAPITAL EXPENDITURES WORKING CAPITAL • ~$14-15M in the fourth quarter, excluding one-time items related to acquisition and divestiture-related costs • $125-135M in 2022, including $50-55M of g
Slide 26: Non-GAAP Measures
26 I MOVING INFRASTRUCTURE FORWARD I 2022 NON-GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not r
Slide 27: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income ($’s in millions) (unaudited) 27 I MOVING INFRASTRUCTURE FORWARD I 2022 (1) Full year 2022 guidance has been adjusted for the divestiture of our storage tanks business completed on October 3, 2022. (2) Includes the impact of the fair value ma
Slide 28: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in millions) (unaudited) 28 I MOVING INFRASTRUCTURE FORWARD I 2022 Three Months Ended September 30, Year Ended December 31, Twelve Months Ended September 30, 2022 2021 2018 2019 2020 2021 2022 Construction Products Operating Profit $ 27.6 $ 26.8 $ 50.4
Slide 29: Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow ($’s in millions) (unaudited) 29 I MOVING INFRASTRUCTURE FORWARD I 2022 Year Ended December 31, Twelve Months Ended September 30, 2018 2019 2020 2021 2022 Cash Provided by Operating Activities $ 118.5 $ 358.8 $ 259.9 $ 166.5 $ 272.3 Ca
Slide 30: Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses
30 I MOVING INFRASTRUCTURE FORWARD I 2022 Year Ended December 31, Full Year 2022 Guidance(1) 2018 2019 2020 2021 Low High Consolidated Adjusted EBITDA(2) $ 186.5 $ 240.7 $ 283.7 $ 283.3 $ 320.0 $ 330.0 Add: Corporate Adjusted EBITDA(2) 32.0 43.7 48.2 45.4 50.0 50.0 Adjusted EBITDA, excluding corpora
Slide 31: Reconciliation of RAMCO Pro forma Adjusted EBITDA
31 I MOVING INFRASTRUCTURE FORWARD I 2022 Reconciliation of RAMCO Pro forma Adjusted EBITDA (in millions) (unaudited) Twelve Months Ended February 28, 2022 Net Income $ 5.9 Add: Interest expense, net 0.0 Provision for income taxes(1) - Depreciation, depletion, and amortization expense 0.9 EBITDA 6.8
Slide 32: N. Akard Street, Suite Dallas, Texas 75201 (972) -6500 ir.arcosa.com
500 N. Akard Street, Suite 400 Dallas, Texas 75201 (972) 942-6500 ir.arcosa.com