Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (August 2022)
33 slides from Arcosa's investor presentation, Aug 17, 2022
Slide 1: Moving Infrastructure Forward | August 2022 Investor Presentation
MOVING INFRASTRUCTURE FORWARD | AUGUST 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 UPDATE 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 6/30/2022. 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 TRANSPORTATION PRODUCTSCONSTRUCTION PRODUCTS Revenues and Adjusted Segment EBITDA and margin for the twelve months ended 6/30/2022. See Adjusted Segment EBITDA reconciliation in Appendix NATURAL & RECYCLED AGGREGATES SPECIALTY MATERIALS CONSTRUCTION SITE SUPPO
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) 24 (6%) 64 (29%) 82 (38%) 207 (55%) FY 2018 73 (33%) 146 (39%) LTM 6/30/22 Transportation Products Engineered Structures Construction Products 219 377 See Adjusted Segment EBITDA reconciliati
Slide 11: Sale of Storage Tanks Business
• Advances our long-term vision to reduce the complexity of Arcosa’s overall portfolio • Proceeds to be invested in our Construction Products platform as we continue to shift towards less cyclical, higher-margin growth opportunities • We prioritized improving the performance of the storage tanks bus
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: Completed Acquisition of RAMCO
COMPLETED $75 MILLION ACQUISITION OF RECYCLED AGGREGATES MATERIALS COMPANY (“RAMCO”) IN MAY 2022 • Enhances Arcosa’s industry-leading position in recycled aggregates and advances portfolio shift into Construction Products • Increases exposure to growing product category driven by ESG and economic be
Slide 14: Recent Financial Highlights
RECENT FINANCIAL HIGHLIGHTS 02
Slide 15: Recent Financial Results
15 I MOVING INFRASTRUCTURE FORWARD I 2022 RECENT FINANCIAL RESULTS See Adjusted Segment EBITDA reconciliation in Appendix. Strong performance and margin expansion since spin driven by acquisitions, organic growth, and operating improvements Margin 12.8% 13.9% Revenues ($M) Adjusted EBITDA ($M) 1,460
Slide 16: Cash Flow and Balance Sheet
16 I MOVING INFRASTRUCTURE FORWARD I 2022 CASH FLOW AND BALANCE SHEET Focus on driving a disciplined ‘cash culture’ has supported significant organic and acquisition investment, while maintaining a healthy balance sheet (1.2) 0.5 (0.6) 0.5 2.1 2.0 1.9 Q1-22Pro Forma at Spin Q2-22FY-19FY-18 FY-21FY-2
Slide 17: Q2 2022 Consolidated Results
17 I MOVING INFRASTRUCTURE FORWARD I 2022 Q2 2022 CONSOLIDATED RESULTS See Adjusted Net Income and Adjusted EBITDA reconciliation in Appendix. Margin 15.3% 16.5% Revenues ($M) Adjusted EBITDA ($M) 515.1 602.8 Q2-21 Q2-22 +17% 78.9 99.2 Q2-21 Q2-22 +26% 20.8 39.0 8.3 Q2-22 29.1 Q2-21 1.9 40.9 +41% Ad
Slide 18: 2022 Outlook
2022 OUTLOOK 03
Slide 19: Updated 2022 Outlook: Raised Adjusted EBITDA Guidance
19 I MOVING INFRASTRUCTURE FORWARD I 2022 Raised our Adjusted EBITDA guidance range in connection with 2Q earnings, reflecting annual growth of 18% from 2021 Updated 2022 Guidance as of 8/3/22. See updated full year 2022 Revenue guidance and Adjusted EBITDA reconciliation in Appendix. Guidance will
Slide 20: Outlook for 2022
20 I MOVING INFRASTRUCTURE FORWARD I 2022 90 157 205 277 351 129 127 127 51 34 Mid-Point FY-22 Guidance FY-18 At Spin FY-19 FY-20 FY-21 329 219 284 332 385 +27% OUTLOOK FOR 2022 Adjusted EBITDA, excluding Corporate ($M) See reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses in Appe
Slide 21: Cyclical Businesses
Low High Plate steel prices began escalating in late 4Q20 84 90 17 18 81 16 55 49 13 105 35 1Q212Q201Q204Q19 3Q214Q203Q20 2Q21 4Q21 1Q22 2Q22 21 I MOVING INFRASTRUCTURE FORWARD I 2022 CYCLICAL BUSINESSES In 2022, our cyclical businesses are expected to be at ~25% of their combined 2018 Adjusted EBIT
Slide 22: Infrastructure Spending
INFRASTRUCTURE SPENDING We believe our businesses are well-positioned to benefit from ~$1 trillion Infrastructure Investment and Jobs Act as well as the ~$435B Inflation Reduction Act • Reauthorization of the Fixing America’s Surface Transportation Act (FAST Act) at a higher level of spending throug
Slide 23: ESG Update
ESG UPDATE 04
Slide 24: ESG Update
ESG UPDATE 24 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. • The o
Slide 25: Appendix
APPENDIX
Slide 26: Additional Financial Guidance for 2022
26 I MOVING INFRASTRUCTURE FORWARD I 2022 ADDITIONAL FINANCIAL GUIDANCE FOR 2022 CORPORATE COSTS COMMENTARY CAPITAL EXPENDITURES WORKING CAPITAL • ~$14-15M per quarter for the remainder of the year, excluding one-time items related to acquisition and divestiture-related costs • $120-140M in 2022, in
Slide 27: Non-GAAP Measures
27 I MOVING INFRASTRUCTURE FORWARD I 2022 NON-GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not r
Slide 28: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income ($’s in millions) (unaudited) 28 I MOVING INFRASTRUCTURE FORWARD I 2022 Three Months Ended June 30, Year Ended December 31, Twelve Months Ended June 30, Full Year 2022 Guidance 2022 2021 2018 2019 2020 2021 2022 Low High Net income $ 39.0 $ 2
Slide 29: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in millions) (unaudited) 29 I MOVING INFRASTRUCTURE FORWARD I 2022 Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, Twelve Months Ended June 30, 2022 2021 2022 2021 2021 2020 2019 2018 2022 Construction Products Operating Pr
Slide 30: Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow ($’s in millions) (unaudited) 30 I MOVING INFRASTRUCTURE FORWARD I 2022 Year Ended December 31, Twelve Months Ended June 30, 2018 2019 2020 2021 2022 Cash Provided by Operating Activities $ 118.5 $ 358.8 $ 259.9 $ 166.5 $ 226.6 Capital
Slide 31: Reconciliation of Cyclical and Growth Businesses Adjusted EBITDA
(1) See Reconciliation of Adjusted Segment EBITDA table. (2) Our cyclical businesses include our wind towers business, included in the Engineered Structures segment, and our Transportation Products segment, which includes our barge and steel components businesses. (3) Our growth businesses include o
Slide 32: Reconciliation of Southwest Rock and RAMCO Pro forma Adjusted EBITDA
Reconciliation of Southwest Rock Pro forma Adjusted EBITDA (in millions) (unaudited) 32 I MOVING INFRASTRUCTURE FORWARD I 2022 Twelve Months Ended May 31, 2021 Net Income $ 11.7 Add: Interest expense, net 0.2 Provision for income taxes(1) - Depreciation, depletion, and amortization expense 2.6 EBITD
Slide 33: 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