Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (May 2022)
32 slides from Arcosa's investor presentation, May 3, 2022
Slide 1: Moving Infrastructure Forward | May 2022 Investor Presentation
MOVING INFRASTRUCTURE FORWARD | MAY 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 3/31/2022. 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 3/31/2022. 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: 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 • At Spin, we prioritized improving the performance of the storage
Slide 11: Strategic Transformation
11 I MOVING INFRASTRUCTURE FORWARD I 2022 STRATEGIC TRANSFORMATION Adjusted EBITDA, excluding Corporate ($M) 193 (55%) Construction Products 22 (6%) 73 (33%) 64 (29%) 82 (38%) FY 2018 At Spin LTM 3/31/22 135 (39%) Transportation Products Engineered Structures 219 350 See Adjusted Segment EBITDA reco
Slide 12: Growing Our Construction Products Platform
GROWING OUR CONSTRUCTION PRODUCTS PLATFORM Attractive markets with long-term pricing and volume growth; less cyclical than other Arcosa businesses Sustainable competitive advantages, through reserve positions, product portfolio, proprietary processing capabilities, and deep market knowledge Fr
Slide 13: Recent Financial Highlights
RECENT FINANCIAL HIGHLIGHTS 02
Slide 14: Recent Financial Results
14 I MOVING INFRASTRUCTURE FORWARD I 2022 RECENT FINANCIAL RESULTS See Adjusted Segment EBITDA reconciliation in Appendix. Strong performance and margin expansion since spin driven by acquisitions, organic growth, and operating improvements Margin 12.8% 13.9% Revenues ($M) Adjusted EBITDA ($M) 1,460
Slide 15: Cash Flow and Balance Sheet
15 I MOVING INFRASTRUCTURE FORWARD I 2022 CASH FLOW AND BALANCE SHEET Focus on driving a disciplined ‘cash culture’ has supported significant organic and acquisition investment, while maintaining a healthy balance sheet (1.2) 0.5 (0.6) 0.5 2.1 2.0 Q1-22FY-18Pro Forma at Spin FY-19 FY-20 FY-21 Net De
Slide 16: Q1 2022 Consolidated Results
16 I MOVING INFRASTRUCTURE FORWARD I 2022 Q1 2022 CONSOLIDATED RESULTS See Adjusted Net Income and Adjusted EBITDA reconciliation in Appendix. Margin 12.8% 13.7% Revenues ($M) Adjusted EBITDA ($M) 440.4 535.8 Q1-21 Q1-22 +22% 56.5 73.4 Q1-21 Q1-22 +30% 15.9 20.2 1.7 Q1-21 0.7 Q1-22 17.6 20.9 +19% Ad
Slide 17: 2022 Outlook
2022 OUTLOOK 03
Slide 18: 2022 Consolidated Outlook
18 I MOVING INFRASTRUCTURE FORWARD I 2022 Increased the mid-point of our Adjusted EBITDA guidance range, which reflects annual growth of 5% from 2021 See Adjusted EBITDA reconciliation in Appendix. Guidance as of April 28, 2022 and will be adjusted for planned divesture of storage tanks business at
Slide 19: Outlook for 2022
19 I MOVING INFRASTRUCTURE FORWARD I 2022 90 157 205 277 325129 127 127 51 23 FY-18 At Spin FY-19 FY-21FY-20 Mid-Point FY-22 Guidance 219 284 332 329 348 +17% OUTLOOK FOR 2022 Adjusted EBITDA, excluding Corporate ($M) See reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses in Append
Slide 20: Cyclical Businesses
20 I MOVING INFRASTRUCTURE FORWARD I 2022 CYCLICAL BUSINESSES In 2022, our cyclical businesses are expected to be at <20% of their combined 2018 Adjusted EBITDA levels, but long-term fundamentals remain attractive Forecast assuming PTC renewal 1Criton Corporation: Prospects for the Dry Cargo Inland
Slide 21: Infrastructure Spending
INFRASTRUCTURE SPENDING We believe our businesses are well-positioned to benefit from ~$1 trillion Infrastructure Investment and Jobs Act • Reauthorization of the Fixing America’s Surface Transportation Act (FAST Act) at a higher level of spending through 2026 • Spending catalysts to Arcosa: • Highw
Slide 22: ESG Update
ESG UPDATE 04
Slide 23: ESG Update
We published our 2021 Sustainability Report highlighting actions we have taken to integrate ESG in our long-term strategy ESG UPDATE SAFETY GREENHOUSE GAS (GHG) EMISSIONS WATER MANAGEMENT SUSTAINABILITY REPORTING INCLUSION AND DIVERSITY BOARD DIVERSITY EMPLOYEE ENGAGEMENT • 60% reduction in our TRIR
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 • ~$13-14M per quarter, excluding one-time items related to acquisition and divestiture-related costs • $120-140M in 2022, including $30-50M of growth proj
Slide 26: Non-GAAP Measures
26 I MOVING INFRASTRUCTURE FORWARD I 2022 NON-GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not r
Slide 27: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions and divestitures, including the cost impact of the fair value markup of acq
Slide 28: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’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 and divestitures, including the cost impact of the fair value
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) (1) These periods include pro forma adjustments for acquisitions completed during the period, as previously disclosed. (2) Adjusted EBITDA includes a 4 month pro forma adjustment of $4.7 million based on p
Slide 30: Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses
Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses (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 $ 290.0 $ 305.0 Add: Corporate Adjusted EBITDA(1) 32.0 43.7 48.2
Slide 31: Reconciliation of Adjusted EBITDA for Storage Tanks Business
Year Ended December 31, Average for Years Ended December 31, Year Ended December 31, 2018 2019-2021 2021 Storage tanks business: Operating Profit $ (9.5) $ 21.9 $ 36.8 Add: Depreciation and amortization expense 5.7 7.0 7.3 EBITDA (3.8) 28.9 44.1 Adjusted EBITDA $ (3.8) $ 28.9 $ 44.1 Reconciliation o
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