Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (May 2023)
36 slides from Arcosa's investor presentation, May 9, 2023
Slide 1: Moving Infrastructure Forward | May 2023 Investor Presentation
MOVING INFRASTRUCTURE FORWARD | MAY 2023 INVESTOR PRESENTATION Exhibit 99.1
Slide 2: Forward Looking Statements
2 I MOVING INFRASTRUCTURE FORWARD I 2023 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 2023 OUTLOOK ESG ACCOMPLISHMENTS 02 RECENT FINANCIAL HIGHLIGHTS TABLE OF CONTENTS 3 I MOVING INFRASTRUCTURE FORWARD I 2023
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 2023
Slide 5: Strategic Update
STRATEGIC UPDATE 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 Revenue, net income, and Adjusted EBITDA are for the twelve months ended 3/31/2023. See Adjusted EBITDA reconciliation in Appendix Net Income(1) Adjusted EBITDA Infrastructure-related Segments Employees Years of Operating History OUR THREE BUSINESS SEGMENTS Revenues$2.3B $130M $36
Slide 8: Business Overview
BUSINESS OVERVIEW ENGINEERED STRUCTURES(1) TRANSPORTATION PRODUCTSCONSTRUCTION PRODUCTS (1) Arcosa completed the divestiture of its Storage Tanks business on October 3, 2022. Financial results for the business included in continuing operations to the date of sale. Revenues and Adjusted Segment EBITD
Slide 9: Arcosa's Long-Term Vision
ARCOSA’S LONG-TERM VISION Grow in attractive markets where we can achieve sustainable competitive advantages Reduce the complexity and cyclicality of the overall business Improve long-term returns on invested capital Integrate Environmental, Social, and Governance (ESG) initiatives into our long-ter
Slide 10: Disciplined Track Record of Growth
90 157 205 277 333129 127 127 51 43 FY-18 At Spin FY-19 FY-22FY-21FY-20 219 284 332 329 376 +20% DISCIPLINED TRACK RECORD OF GROWTH Adjusted EBITDA, excluding Corporate ($M) CAGR – Compound Annual Growth Rate. See reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses in Appendix. Achi
Slide 11: Strategic Transformation
STRATEGIC TRANSFORMATION Adjusted EBITDA, excluding Corporate ($M) 143 (35%) 64 (29%) 35 (8%) LTM 3/31/23 82 (38%) 73 (33%) FY 2018 234 (57%) Transportation Products Engineered Structures Construction Products 219 412 See Adjusted Segment EBITDA reconciliations in the Appendix. Construction Products
Slide 12: Sale of Storage Tanks Business
• Advances our long-term vision to reduce the complexity of Arcosa’s overall portfolio • Proceeds provide capital for allocation to our growth businesses as we continue to shift towards less cyclical, higher-margin opportunities • We prioritized improving the performance of the storage tanks busines
Slide 13: Growing Our Construction Products Platform
GROWING OUR CONSTRUCTION PRODUCTS PLATFORM Attractive markets with long-term pricing and volume growth; less cyclical than other Arcosa businesses Sustainable competitive advantages, through reserve positions, product portfolio, proprietary processing capabilities, and deep market knowledge Fr
Slide 14: Recent Financial Highlights
RECENT FINANCIAL HIGHLIGHTS 02
Slide 15: Recent Financial Results
RECENT FINANCIAL RESULTS See Adjusted Net Income and Adjusted EBITDA reconciliation in Appendix; Storage Tanks business divested on October 3, 2022 and results included in continuing operations to the date of sale. Revenues ($M) Adjusted EBITDA ($M) 2,036 2,243 FY-22FY-21 +10% Double-digit Adjusted
Slide 16: Q1 2023 Consolidated Results
Q1 2023 CONSOLIDATED RESULTS See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix; Storage Tanks business divested on October 3, 2022 and included in continuing operations to the date of sale. Revenues ($M) Adjusted EBITDA ($M) 475.9 59.9 Q1-22 Q1-23 535.8 549.2 +15% +3% Net Incom
Slide 17: Cash Flow and Balance Sheet
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 1.2 1.1 FY-22Pro Forma at Spin FY-18 FY-21FY-19 FY-20 Q1-23 Net D
Slide 18: 2023 Outlook
2023 OUTLOOK 03
Slide 19: 2023 Guidance
Normalizing for the sale of storage tanks, increased Adjusted EBITDA guidance at the mid-point reflects 29% growth from 2022 See full year 2023 Adjusted EBITDA guidance reconciliation in Appendix; Storage Tanks business divested on October 3, 2022 and included in continuing operations to the date of
Slide 20: Growth Businesses Outlook
GROWTH BUSINESSES OUTLOOK Demand outlook is attractive with additional tailwinds from increased infrastructure spending Engineered Structures • Infrastructure spending up due to increased federal funding from IIJA and healthy state DOT budgets • Robust demand for non-residential and multi-family con
Slide 21: Wind Towers Outlook
WIND TOWERS OUTLOOK Long-Term Recovery in Wind Industry Expected in 2024 and Beyond 0 5 10 15 20 25 24212020 22 23 25 2726 28 29 30 31 32 U.S. Wind Installations (2020-2032)1 (GW) Forecast 10-year PTC extension, passed in August 2022, is expected to boost capacity in the U.S., after the industry rec
Slide 22: Inland Barge Outlook
INLAND BARGE OUTLOOK 22 I MOVING INFRASTRUCTURE FORWARD I 2023 84 90 17 18 81 16 55 49 13 105 35 48 134 122 1Q21 3Q214Q19 3Q202Q20 4Q201Q20 2Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Outlook for Dry Barge Replacement Cycle Remains Intact Fleet age is Increasing due to underinvestment since 2016; forecasts i
Slide 23: 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 24: ESG Accomplishments
ESG ACCOMPLISHMENTS 04
Slide 25: ESG Accomplishments
ESG ACCOMPLISHMENTS Our 2022 Sustainability Report details the initiatives in place to integrate ESG into our long-term strategy 25 I MOVING INFRASTRUCTURE FORWARD I 2023 PEOPLE Community Impact Employee Health and Safety Inclusion and Diversity Talent Development PRODUCTS Product Quality and Safety
Slide 26: Employee Health and Safety
26 I MOVING INFRASTRUCTURE FORWARD I 2023 EMPLOYEE HEALTH AND SAFETY 72% reduction in our TRIR since 2019 Total Recordable Incident Rate (TRIR) Continuous Improvement Initiatives: • Front-line supervisor training • Employee safety mentorship • Enhanced near miss reporting • Hand and eye injury reduc
Slide 27: Greenhouse Gas (GHG) Emissions
27 I MOVING INFRASTRUCTURE FORWARD I 2023 GREENHOUSE GAS (GHG) EMMISSIONS We are tracking ahead of our 2026 GHG emissions intensity reduction goal of 10% compared to 2020 levels 371 327 296 264 2020 20222019 2021 -19% GHG EMISSIONS INTENISITY2 117 113 120 101 468 452 442 491 2019 592 2020 2021 2022
Slide 28: Appendix
APPENDIX
Slide 29: Guidance Summary for 2023
GUIDANCE SUMMARY FOR 2023 ADJUSTED EBITDA COMMENTARY CAPITAL EXPENDITURES OTHER • $345M to $370M range for full year 2023 • Includes estimated AMP tax credits for wind towers of $17M to $22M, subject to further guidance from the IRS • 2022 full year Adjusted EBITDA was $278M, excluding $47M from the
Slide 30: Non-GAAP Measures
NON-GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our bu
Slide 31: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income ($’s in millions) (unaudited) 31 I MOVING INFRASTRUCTURE FORWARD I 2023 (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
Slide 32: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in millions) (unaudited) (1) Includes the impact of the fair value markup of acquired long-lived assets, subject to final purchase price adjustments. (2) Expenses associated with acquisitions and divestitures, including the cost impact of the fair value
Slide 33: Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Debt to Adjusted EBITDA and Free Cash Flow ($’s in millions) (unaudited) 33 I MOVING INFRASTRUCTURE FORWARD I 2023 (1) These periods include pro forma adjustments for acquisitions completed during the period, as previously disclosed. (2) Adjusted EBITDA includes a two month pro
Slide 34: Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses
Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses (in millions) (unaudited) 34 I MOVING INFRASTRUCTURE FORWARD I 2023 Year Ended December 31, 2018 2019 2020 2021 2022 Consolidated Adjusted EBITDA(1) $ 186.5 $ 240.7 $ 283.7 $ 283.3 $ 325.1 Add: Corporate Adjusted EBITDA(1) 32.0 43.
Slide 35: Reconciliation of RAMCO Pro forma Adjusted EBITDA
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(2) - Depreciation, depletion, and amortization expense 0.9 EBITDA 6.8 Add: Pro forma adjustments 2.8 Pro forma
Slide 36: 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