Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (May 2019)
23 slides from Arcosa's investor presentation, May 10, 2019
Slide 1: Investor Presentation May 2019
Exhibit 99.1 Investor Presentation May 2019
Slide 2: 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 Inc.’s (“Arcosa”, or the “Company”) estimat
Slide 3: 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 3 / Moving Infrastructure Forward — Investor Presentation, May 2019
Slide 4: Agenda
Agenda . Company overview and strategic highlights . Appendix 4 / Moving Infrastructure Forward — Investor Presentation, May 2019
Slide 5: Company Overview
Company Overview Established businesses with over $1.5B of revenues and additional potential to thrive in Arcosa’s new structure Markets CONSTRUCTION ENERGY TRANSPORTATION Revenues $328M $793M $400M Adj.Segment 23% 12% EBITDA 16% Margin AGGREGATES WIND TOWERS BARGES SPECIALTY UTILITY COMPONENTS MATE
Slide 6: Outlook by Segment
Outlook by Segment CONSTRUCTION ENERGY TRANSPORTATION . Infrastructure construction activity . Wind Towers: . Barge: expected to benefit from FAST Act funding - Backlog extends into 2020 - Order activity remained strong, and state and local spending - Currently quoting additional orders for particul
Slide 7: Stage Priorities
Stage 1 Priorities We are making solid progress on our Stage 1 Priorities . Integration of December 2018 ACG Materials acquisition progressing well with 1Q19 results in-line Grow Construction with our expectations . Products Continue to evaluate robust pipeline of bolt-on acquisitions in both our le
Slide 8: ACG Acquisition Update
ACG Acquisition Update Integration is progressing well; ACG will be a platform for additional value creation in our Construction Products segment Levers for additional value Geographic diversity End market diversity creation ACG Footprint Aggregate mines ACG End Markets Production facilities End mar
Slide 9: Barge Recovery Continues
Barge Recovery Continues Recent orders have been strong and production ramp up is on track Inland Barge business Backlog Value Trend ($millions) . Recent book to bill ratios have been strong, and above 1.0 in the Book to Bill <1.0 Book to Bill >1.0 last 5 quarters 565 . Exceptionally strong quarter
Slide 10: First Quarter 2019 Financial Results
First Quarter 2019 Financial Results Reported strong year-over-year growth across key metrics in first full quarter as independent company Revenues Net Income Adjusted EBITDA $M’s $M’s $M’s +25% +21% +16% 27.7 58.5 410.9 48.3 354.4 22.2 Q1-18 Q1-19 Q1-18 Q1-19 Q1-18 Q1-19 Margin 13.6% 14.2% See Adju
Slide 11: 2019 Guidance Reaffirmed on Continued Confidence
2019 Guidance Reaffirmed on Continued Confidence 18% Adjusted EBITDA growth expected in 2019 at mid-point of guidance range Full Year Revenues ($M’s) Full Year Adjusted EBITDA ($M’s) Organic growth and ACG acquisition expected to more than offset headwinds from incremental public company costs and l
Slide 12: Strong and liquid balance sheet
Strong and liquid balance sheet Net debt of “zero” at March 31, 2019 and available liquidity of $371M ($ in Millions) 371 . No legacy debt inherited at spin; put in place a Cash 118 $400M unsecured revolver that matures in 2023 . Funded $309M ACG Materials acquisition with ~$130M cash and $180M of b
Slide 13: Capital Allocation Priorities
Capital Allocation Priorities We continue to follow a balanced approach to capital allocation while being disciplined on acquisitions Organic investments Acquisitions Return of capital to shareholders . Expect Maintenance Capital . We have a number of opportunities . As of 1Q19, repurchased ~$11 Exp
Slide 14: Incentive Compensation Plans
Incentive Compensation Plans Arcosa’s incentive plans align compensation to long term shareholder value creation while also driving accountability to the business level Short Term Incentive Plan (STI) Long Term Incentive Plan (LTI) Focus . Annual operational and financial . 3 year Return on Capital
Slide 15: Long-Term Vision for Arcosa
Long-Term Vision for Arcosa Integrate Environmental, Social, Improve and Governance Reduce long-term returns initiatives (ESG) into our the complexity and on invested capital long-term strategy Grow cyclicality of the overall in attractive markets business where we can achieve sustainable competitiv
Slide 16: Environmental, social, and governance impact
Environmental, social, and governance impact Our board and leadership team are committed to ESG impact Safety and health Environment People & communities Governance Protecting the safety and We are stewards of Our people contribute to We are committed to the health of our people the environment and
Slide 17: Appendix
Appendix
Slide 18: Construction Products Segment Overview
Construction Products Segment Overview PRODUCTS KEY FIGURES REVENUE LTM 3/31/2019 by product type ($M) Construction $328M site support SPECIALTY CONSTRUCTION Revenue AGGREGATES MATERIALS SITE SUPPORT 74 74 (23%) Natural sand, gravel Lightweight Steel & aluminum 23% trench shoring and limestone base
Slide 19: Energy Equipment Segment Overview
Energy Equipment Segment Overview PRODUCTS KEY FIGURES REVENUE LTM 3/31/2019 by product type ($M) Storage tanks $793M and other WIND TOWERS UTILITY STRUCTURES Revenue 199 (25%) Storage 12% 594 Adjusted Segment EBITDA (75%) Margin RESIDENTIAL/COMMERCIAL/ INDUSTRIAL SCALE & FIELD AGRICULTURAL ERECTED
Slide 20: Transportation Products Segment Overview
Transportation Products Segment Overview PRODUCTS KEY FIGURES REVENUE LTM 3/31/2019 by product type ($M) $400M Barges FIBERGLASS TANK BARGES HOPPER BARGES Revenue COVERS 189 16% (47%) 211 Adjusted Segment EBITDA (53%) RAILCAR INDUSTRIAL & Margin RAILCAR AXLES COUPLING MINING DEVICES COMPONENTS $5B+
Slide 21: Reconciliation of Consolidated and Combined Adjusted EBITDA
Reconciliation of Consolidated and Combined Adjusted EBITDA ($’s in Millions) Three Months Ended Full Year (unaudited) 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) f
Slide 22: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in Millions) Three Months Ended Last Twelve Months (unaudited) March 31, March 31, 2019 2018 2019 Construction Products Revenues $ 106.0 $ 70.2 $ 328.1 Operating Profit 11.3 12.4 49.3 Add: Depreciation, depletion, and amortization 8.8 5.1 25.6 expense S
Slide 23: Adjusted ACG EBITDA reconciliation
Adjusted ACG EBITDA reconciliation ($’s in Millions) (unaudited) For the Trailing Twelve Months Ended August 31, 2018: Revenues $152.0 Net Income (1.8) Add: Interest expense 16.6 Provision (benefit) for income taxes (3.9) Depreciation, depletion, and 15.4 amortization expense EBITDA $26.3 Add: Other