Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (March 2023)
32 slides from Arcosa's investor presentation, Mar 9, 2023
Slide 1: Moving Infrastructure Forward | Investor Presentation March 2023
MOVING INFRASTRUCTURE FORWARD | MARCH 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: 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 Revenue, net income, and Adjusted EBITDA are for the fiscal year ended 12/31/2022. See Adjusted EBITDA reconciliation in Appendix Arcosa spun off from its former parent company in November 2018. Net Income(1) Adjusted EBITDA Infrastructure‐related Segments Employees Years of Opera
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 initiatives (ESG) into our long‐ te
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) 73 (33%) 82 (38%) 64 (29%) 149 (40%) FY 2018 27 (7%) 199 (53%) FY 2022 Transportation Products Engineered Structures Construction Products 219 376 See Adjusted Segment EBITDA reconciliations in the Appendix. FY 2022 Engineered Struct
Slide 12: Storage Tanks Divestiture
• 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: FY 2022 Consolidated Results
FY 2022 CONSOLIDATED RESULTS N.M – Not meaningful. 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) 2,036.4 2,242.8 FY‐22FY‐
Slide 16: 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 2.0 1.9 1.8 1.2 Pro Forma at Spin FY‐20 Q1‐22FY‐18 FY‐21FY‐19 Q2‐
Slide 17: 2023 Outlook
2023 OUTLOOK 03
Slide 18: 2023 Guidance
Solid revenue and Adjusted EBITDA growth expected for 2023, normalizing for the sale of storage tanks (1) Excludes contribution from Storage Tanks in FY‐22. See full year 2023 Revenue guidance and Adjusted EBITDA reconciliation in Appendix; Storage Tanks business divested on October 3, 2022 and resu
Slide 19: 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 20: Cyclical Businesses
84 90 17 18 81 16 55 49 13 105 35 48 134 2Q213Q201Q20 3Q214Q19 4Q202Q20 4Q211Q21 1Q22 2Q22 3Q22 4Q22 CYCLICAL BUSINESSES Market fundamentals for our Cyclical Businesses continue to improve resulting in significant orders booked in the fourth quarter 1Criton Corporation: Prospects for the Dry Cargo I
Slide 21: 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 22: ESG Accomplishments
ESG ACCOMPLISHMENTS 04
Slide 23: ESG Accomplishments
ESG ACCOMPLISHMENTS 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 organization’s rigorous and transp
Slide 24: Appendix
APPENDIX
Slide 25: Guidance Summary for 2023
GUIDANCE SUMMARY FOR 2023 ADJUSTED EBITDA COMMENTARY CAPITAL EXPENDITURES OTHER • $310M to $340M range for full year 2023 • Range includes ~$22M gain from expected first quarter land sale in Construction Products • 2022 full year Adjusted EBITDA was $278M, excluding $47M from the storage tanks busin
Slide 26: Non-GAAP Measures
NON‐GAAP MEASURES Refer to slides that follow for accompanying reconciliations “EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our bu
Slide 27: Reconciliation of Adjusted EBITDA and Adjusted Net Income
Reconciliation of Adjusted EBITDA and Adjusted Net Income ($’s in millions) (unaudited) 27 I MOVING INFRASTRUCTURE FORWARD I 2023 Year Ended December 31, Full Year 2023 Guidance 2022 2021 Low High Net income $ 245.8 $ 69.6 $ 96.5 $ 117.0 Add: Interest expense, net 29.9 23.4 28.0 30.0 Provision for i
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) 29 I MOVING INFRASTRUCTURE FORWARD I 2023 As of Pro Forma September 30, 2018(1) December 31, 2018 December 31, 2019 December 31, 2020(1) December 31, 2021(1) March 31, 2022(1) June 30, 2022(1) September 30
Slide 30: Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses
Reconciliation of Adjusted EBITDA for Cyclical and Growth Businesses (in millions) (unaudited) (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
Slide 31: 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 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