Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (November 2021)
29 slides from Arcosa's investor presentation, Nov 12, 2021
Slide 1: Investor Presentation November 2021
Investor Presentation November 2021 Exhibit 99.1
Slide 2: Forward-Looking Statements
/ Moving Infrastructure Forward2 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 estimate
Slide 3: How to Find Us
/ How to Find Us 3 INVESTOR CONTACT InvestorResources@arcosa.com NYSE TICKER ACA OUR WEBSITE www.arcosa.com HEADQUARTERS Arcosa, Inc. 500 North Akard Street, Suite 400 Dallas, Tx 75201 Moving Infrastructure Forward
Slide 4: Table of Contents
/4 1 3 4 Company Overview Financial Highlights & Outlook ESG Update Moving Infrastructure Forward 2 3-Year Transformation Table of Contents
Slide 5: Company Overview
/5 1 Company Overview Moving Infrastructure Forward
Slide 6: Arcosa's Value Proposition
/6 Arcosa’s Value Proposition Strong 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 priorit
Slide 7: Arcosa at a Glance
/7 Arcosa at a Glance Revenues, Adjusted EBITDA and Net Income are for the twelve months ended 9/30/2021. See Adjusted EBITDA reconciliation in Appendix. Arcosa spun off from its former parent company in November 2018. $71M Net Income $274M Adjusted EBITDA $2.0B Revenues 3 Infrastructure-related Seg
Slide 8: Business Overview
/ Business Overview 8 Revenues ENGINEERED STRUCTURES TRANSPORTATION PRODUCTS CONSTRUCTION PRODUCTS Segments Adj.Segment EBITDA & Margin Arcosa’s three segments are made up of leading businesses that serve critical infrastructure markets NATURAL & RECYCLED AGGREGATES SPECIALTY MATERIALS CONSTRUCTION
Slide 9: Our Long-Term Vision
/9 Our 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-term
Slide 10: 3-Year Transformation
/10 2 3-Year Transformation Moving Infrastructure Forward
Slide 11: Today, Arcosa is a less cyclical and more resilient company
/ Today, Arcosa is a less cyclical and more resilient company Moving Infrastructure Forward11 189 (55%) 73 (33%) 120 (35%) 64 (29%) 82 (38%) Transportation Products 2018 36 (10%) LTM 9/30/21 219 345 Engineered Structures Construction Products See Adjusted Segment EBITDA reconciliations in the Append
Slide 12: Repositioning Arcosa Around More Stable Infrastructure Products
/12 Repositioning Arcosa Around More Stable Infrastructure Products Construction Products 2018 LTM September 2021 Our performance highlights our progress in creating a more stable base of revenue and profit, anchored around core infrastructure products Moving Infrastructure Forward Natural aggrega
Slide 13: Attractive fundamentals of Aggregates and Specialty Materials
/ 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 Fragmented industry structure with ability
Slide 14: Financial Highlights & Outlook
/14 3 Financial Highlights & Outlook Moving Infrastructure Forward
Slide 15: Q3-2021 Financial Results
/ Q3-2021 Financial Results Moving Infrastructure Forward15 490.0 559.1 Q3-20 Q3-21 +14% 73.0 82.0 Q3-20 Q3-21 +12% See Adjusted Net Income and Adjusted EBITDA reconciliations in Appendix. Double-digit growth in revenues and Adjusted EBITDA, led by Construction Products and Engineered Structures 31.
Slide 16: Cash Flow and Balance Sheet
/ Cash Flow and Balance Sheet 16 Moving Infrastructure Forward Net Debt / Adjusted EBITDA Ratio at end of quarter Free Cash Flow $M’s ... has supported significant organic & acquisition investment, while maintaining a healthy balance sheet Focus on driving a disciplined ‘cash culture’…. -1.2 0.5 -0.
Slide 17: Near-Term Outlook
/17 Near-Term Outlook Construction Products and Engineered Structures end markets remain well positioned for growth, with some offsetting impacts from barge and wind tower Moving Infrastructure Forward 55% 35% 10% Positive Outlook Strong construction activity in our key markets, particularly Texas
Slide 18: Well-positioned to benefit from potential federal infrastructure stimulus
/ We believe our businesses are well-positioned to benefit from potential federal infrastructure stimulus Moving Infrastructure Forward18 • Reauthorization of the Fixing America’s Surface Transportation Act (FAST Act) at a higher level of spending • Potential PTC extension for new wind farm developm
Slide 19: 2021 Outlook
/ 2021 Outlook 2021 Adjusted EBITDA guidance reflects 22% increase in our two growth segments, Construction Products and Engineered Structures, with some offset from cyclically depressed Transportation Products Moving Infrastructure Forward19 See Adjusted EBITDA reconciliation in Appendix. Revenues
Slide 20: ESG Update
/20 4 ESG Update Moving Infrastructure Forward
Slide 21: Long-term Vision: ESG Update
/ Long-term Vision: ESG Update Moving Infrastructure Forward21 We continue to integrate ESG into our business through our strategic planning process, ESG-focused initiatives, and innovative continuous improvement projects Our 2020 Sustainability Report published on April 19, 2021 highlights a number
Slide 22: We continue to make progress on our ESG journey
/ We continue to make progress on our ESG journey Moving Infrastructure Forward22 For Arcosa, building a culture of ESG starts with foundational steps achieved through stakeholder engagement, cross-functional collaboration, and planning Effective November 1st, increased female Board of Director repr
Slide 23: Appendix
Appendix
Slide 24: Additional Financial Guidance for 2021
/24 Additional Financial Guidance for 2021 Corporate costs Commentary Moving Infrastructure Forward Capital expenditures Working capital ~$13-14M in Q4, excluding non-recurring items related to acquisitions and integration of ~$2M $90-100M in 2021 (~$65M of maintenance capex + $25-35M of growth
Slide 25: Non-GAAP Measures
/ Non-GAAP Measures 25 Moving Infrastructure Forward “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 business. GAAP does not defi
Slide 26: Reconciliation of Adjusted EBITDA and Adjusted Net Income
/ Reconciliation of Adjusted EBITDA and Adjusted Net Income 26 Moving Infrastructure Forward (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, including the cost impact of the fair v
Slide 27: Adjusted Segment EBITDA Reconciliation
/ Twelve Months Ended September 30, Year Ended December 31, 2021 2020 2021 2018 Construction Products Operating Profit $ 26.8 $ 20.8 $ 73.3 $ 50.4 Add: Depreciation, depletion, and amortization expense(1) 25.2 15.2 82.0 21.9 Segment EBITDA 52.0 36.0 155.3 72.3 Add: Impact of acquisition-related expe
Slide 28: Reconciliation of Free Cash Flow and Net Debt to Adjusted EBITDA
/ Reconciliation of Free Cash Flow and Net Debt to Adjusted EBITDA 28 Moving Infrastructure Forward ($’s in millions) (unaudited) Twelve Months Ended September 30, 2020 2019 2018 2021 Cash Provided by Operating Activities $ 259.9 $ 358.8 $ 118.5 $ 110.0 Capital Expenditures (82.1) (85.4) (44.8) (86.
Slide 29: Reconciliation of Southwest Rock and StonePoint Pro Forma Adjusted EBITDA
/ Reconciliation of Southwest Rock and StonePoint Pro Forma Adjusted EBITDA 29 Moving Infrastructure Forward (in millions) (unaudited) (1) Pass-through entity and not subject to federal income taxes. (2) Includes Paycheck Protection Program loan forgiveness, partially offset by management compensati