Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (August 2019)
21 slides from Arcosa's investor presentation, Aug 6, 2019
Slide 1: Investor Presentation August 2019
Exhibit 99.1 Investor Presentation August 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, August 2019
Slide 4: Company Overview
Company Overview Established businesses with $1.6B of revenues and additional potential to thrive in Arcosa’s new structure Markets CONSTRUCTION ENERGY TRANSPORTATION Revenues $360M $819M $423M Adj.Segment 22% 13% EBITDA 15% Margin AGGREGATES WIND TOWERS BARGES SPECIALTY UTILITY COMPONENTS MATERIALS
Slide 5: Stage 1 Priorities
Stage 1 Priorities We continue to make solid progress on our Stage 1 Priorities . Integration of December 2018 ACG Materials acquisition progressing well with results in-line with our Grow Construction expectations . Continue to evaluate robust pipeline of bolt-on acquisitions in both our legacy and
Slide 6: 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 7: Barge Recovery Continues
Barge Recovery Continues Recent orders have been strong and production ramp up is on track . Barge backlog up 52% year-to- date, with first-half 2019 orders Inland Barge business of $235M Backlog Value Trend ($millions) 565 . Approximately $161M of backlog extends into 2020, providing increased visi
Slide 8: Second Quarter 2019 Financial Results
Second Quarter 2019 Financial Results Reported strong year-over-year growth across key metrics 2nd Quarter, ended June 30 ($M’s) Year-to-Date, ended June 30 ($M’s) Adjusted Adjusted Revenues Net Income Revenues Net Income EBITDA EBITDA +23% +33% +41% +38% +19% 434.1 59.5 +30% 64.2 845.0 31.8 122.7 3
Slide 9: Raising 2019 Guidance
Raising 2019 Guidance 26% Adjusted EBITDA growth expected in 2019 at mid-point of updated guidance range Full Year Revenues ($M’s) Full Year Adjusted EBITDA ($M’s) +26% +22% 230-240 1,700 – 1,800 1,750 – 1,800 215-225 1,460 187 Organic growth and ACG acquisition expected to more than offset headwind
Slide 10: Strong and liquid balance sheet
Strong and liquid balance sheet Available liquidity of $337M as of June 30, 2019 ($ in Millions) 337 Cash 83 . No legacy debt inherited at spin; put in place a $400M unsecured revolver that matures in 2023 . Outstanding debt of $108M at June 30th consists primarily of remaining revolver advances use
Slide 11: Capital Allocation Priorities
Capital Allocation Priorities We continue to follow a balanced approach to capital allocation while being disciplined on acquisitions Return of capital Organic investments Acquisitions to shareholders . Expect Maintenance Capital . We have a number of opportunities . As of 2Q19, repurchased ~$11 Exp
Slide 12: Incentive Compensation Plans
Incentive Compensation Plans Arcosa’s incentive plans align compensation to long term shareholder value creation while also driving accountability to the business level Short Term Incentive Plan (STI) Long Term Incentive Plan (LTI) Focus . Annual operational and financial . 3 year Return on Capital
Slide 13: Long-Term Vision for Arcosa
Long-Term Vision for Arcosa Integrate Environmental, Social, Improve and Governance Reduce long-term returns initiatives (ESG) into our the complexity and on invested capital long-term strategy Grow cyclicality of the overall in attractive markets business where we can achieve sustainable competitiv
Slide 14: ESG Update
ESG Update We recently completed a Materiality Assessment that identified ESG topics that will be integrated into our long term strategy Our Our People & Our Environment Products Communities Employee Health and Safety Energy Management Product Use and Quality Diversity Air Quality Talent Management
Slide 15: Appendix
Appendix
Slide 16: Construction Products Segment Overview
Construction Products Segment Overview PRODUCTS KEY FIGURES REVENUE (LTM 6/30/2019) by product type ($M) Construction $360M site support SPECIALTY CONSTRUCTION Revenue AGGREGATES MATERIALS SITE SUPPORT 74 74 (21%) Natural sand, gravel Lightweight Steel & aluminum 22% trench shoring and limestone bas
Slide 17: Energy Equipment Segment Overview
Energy Equipment Segment Overview PRODUCTS KEY FIGURES REVENUE (LTM 6/30/2019) by product type ($M) Storage tanks $819M and other WIND TOWERS UTILITY STRUCTURES Revenue 207 (25%) Storage 13% 612 Adjusted Segment EBITDA (75%) Margin RESIDENTIAL/COMMERCIAL/ INDUSTRIAL SCALE & FIELD AGRICULTURAL ERECTE
Slide 18: Transportation Products Segment Overview
Transportation Products Segment Overview PRODUCTS KEY FIGURES REVENUE (LTM 6/30/2019) by product type ($M) $423M Barges FIBERGLASS TANK BARGES HOPPER BARGES Revenue COVERS 211 212 15% (50%) (50%) Adjusted Segment EBITDA RAILCAR INDUSTRIAL & Margin RAILCAR AXLES COUPLING MINING DEVICES COMPONENTS $5B
Slide 19: Reconciliation of Consolidated and Combined Adjusted EBITDA
Reconciliation of Consolidated and Combined Adjusted EBITDA ($’s in Millions) (unaudited) Three Months Ended Six Months Ended Full Year June 30, June 30, 2019 Guidance 2019 2018 2019 2018 Low High Revenues $ 434.1 $ 353.0 $ 845.0 $ 707.4 $ 1,750.0 $ 1,800.0 Net Income 31.8 22.6 59.5 44.8 100.0 111.0
Slide 20: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA ($’s in Millions) Three Months Ended Six Months Ended Last Twelve Months (unaudited) June 30, June 30, June 30, 2019 2018 2019 2018 2019 Construction Products Revenues $ 115.6 $ 83.9 $ 221.6 $ 154.1 $ 359.8 Operating Profit 17.5 17.6 28.8 30.0 49.2 Add: Depr
Slide 21: 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