Arcosa, Inc. · NYSE:ACA
Arcosa — Investor Presentation (March 2019)
23 slides from Arcosa's investor presentation, Mar 4, 2019
Slide 1: Investor Presentation March 2019
Exhibit 99.1 Investor Presentation March 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, March 2019
Slide 4: Agenda
Agenda . Company overview and strategic highlights . Appendix 4 / Moving Infrastructure Forward — Investor Presentation, March 2019
Slide 5: Company Overview
Company Overview Established businesses with $1.5B of revenues and additional potential to thrive in Arcosa’s new structure Markets CONSTRUCTION ENERGY TRANSPORTATION Revenues $292M $780M $391M Adj.Segment 25% 10% 16% EBITDA Margin AGGREGATES WIND TOWERS BARGES SPECIALTY UTILITY COMPONENTS MATERIALS
Slide 6: Outlook by Segment
Outlook by Segment CONSTRUCTION ENERGY TRANSPORTATION . Infrastructure construction activity . Wind Towers: . Barge: expected to benefit from FAST Act - Backlog extends into 2020 - Barge operators pointing to funding and state and local spending - Continue to see new wind tower orders but increased
Slide 7: Stage Priorities
Stage 1 Priorities We are making solid progress on priorities laid out at Investor Day . $309M ACG Materials acquisition adds significant scale, new specialty materials and aggregates Grow Construction platforms, and geographic diversity Products . ACG has robust pipeline of bolt-on acquisitions . I
Slide 8: ACG Acquisition Update
ACG Acquisition Update Integration is progressing well; ACG will be a platform for additional value creation in our Construction Products segment Levers for additional value Geographic diversity End market diversity creation ACG Footprint Aggregate mines ACG End Markets Production facilities End mar
Slide 9: Emerging Barge Recovery
Emerging Barge Recovery Recent orders have been strong, leading to announced re-opening of idled facility Inland Barge business . Recent book to bill ratios have Book to Bill ratio ($ Value of Orders Signed: $ Value of Orders Produced) been strong, and above 1.0 in 2.7 the last 4 quarters 2.3 . Back
Slide 10: 2018 Financial Results
2018 Financial Results Positive momentum heading into 2019 4th Quarter ($M’s) Full Year ($M’s) Adjusted Adjusted Revenues Net Income Revenues Net Income EBITDA EBITDA 0% +8% 1,462.4 1,460.4 +12% -6% 374.4 197.4 347.5 45.4 186.5 +17% 40.6 -16% 27.7 89.7 23.6 75.7 Q4-17 Q4-18 Q4-17 Q4-18 Q4-17 Q4-18 F
Slide 11: Raising 2019 Guidance for ACG Acquisition
Raising 2019 Guidance for ACG Acquisition Adjusted EBITDA growth expected in 2019 Full Year Revenues ($M’s) Full Year Adjusted EBITDA ($M’s) Organic growth and ACG acquisition more than offset headwinds from incremental public company costs and lower margins 1,700 – 1,800 in Components business 215
Slide 12: Balance sheet remains strong
Balance sheet remains strong $272M of available liquidity at year end 2018 ($ in Millions) 272 Cash 99 . Funded ACG with ~$130M cash and $180M of borrowing under $400M credit facility . $186M of debt at year end 2018, with $100M fixed at ~4% for 5 years . Unencumbered balance sheet Revolver 173 Capa
Slide 13: Capital Allocation Priorities
Capital Allocation Priorities We are following a disciplined capital allocation process to drive higher returns on invested capital Organic investments Acquisitions Return of capital to shareholders . Maintenance Capital Expenditures of . Deployed $333M towards . Repurchased ~$3 million of $60-65M p
Slide 14: Long Term Vision for Arcosa
Long Term Vision for Arcosa Integrate Environmental, Grow in attractive Social, and Reduce the Improve long term Governance markets where we complexity and returns on can achieve initiatives (ESG) cyclicality of the invested capital into our long term sustainable overall business competitive strateg
Slide 15: Environmental, social, and governance impact
Environmental, social, and governance impact Our board and leadership team are committed to ESG impact Safety and health Environment People & communities Governance Protecting the safety and We are stewards of Our people contribute to We are committed to the health of our people the environment and
Slide 16: Appendix
ARCOSA Appendix
Slide 17: Construction Products Segment Overview
Construction Products Segment Overview PRODUCTS KEY FIGURES REVENUE 12/31/18 by product type ($M) Construction site support $292M SPECIALTY CONSTRUCTION Revenue 74 AGGREGATES MATERIALS SITE SUPPORT74 (25%) 25% Natural sand, gravel Shale & clay Steel & aluminum Adjusted EBITDA and limestone base expa
Slide 18: Energy Equipment Segment Overview
Energy Equipment Segment Overview Products Key figures Revenue 12/31/18 by product type ($M) Storage tanks and other WIND TOWERS UTILITY STRUCTURES $780M 197 Revenue (25%) Storage 583 10% (75%) Adjusted EBITDA RESIDENTIAL/COMMERCIAL/ INDUSTRIAL SCALE & FIELD Margin AGRICULTURAL ERECTED STORAGE Utili
Slide 19: Transportation Products Segment Overview
Transportation Products Segment Overview PRODUCTS KEY FIGURES REVENUE 12/31/18 by product type ($M) $391M Barges TANK BARGES HOPPER BARGES FIBERGLASS Revenue COVERS 170 16% (43%) Adjusted EBITDA 221 RAILCAR INDUSTRIAL & Margin (57%) RAILCAR AXLES COUPLING MINING DEVICES COMPONENTS $5B+ Components Es
Slide 20: Reconciliation of Consolidated and Combined Adjusted EBITDA
Reconciliation of Consolidated and Combined Adjusted EBITDA Three Months Ended Year Ended Full Year December 31, December 31, 2019 Guidance 2018 2017 2018 2017 Low High Revenues $374.4 $347.5 $1,460.4 $1,462.4 $1,700.0 $1,800.0 Net Income 27.7 23.6 75.7 89.7 85.0 98.0 Add: Interest expense, net 0.5
Slide 21: Adjusted ACG EBITDA reconciliation
Adjusted ACG EBITDA reconciliation (unaudited) $ Millions (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 Adjus
Slide 22: Reconciliation of Adjusted Segment EBITDA
Reconciliation of Adjusted Segment EBITDA Three Months Ended Year Ended December 31, December 31, 2018 2017 2018 2017 Construction Products Revenues $65.6 $64.1 $292.3 $258.9 Operating Profit 5.1 11.2 50.4 53.7 Add: Depreciation, depletion, and amortization 6.5 5.1 21.9 18.4 expense “Segment EBITDA”
Slide 23: Reconciliation of Adjusted Net Income and Adjusted Diluted EPS
Reconciliation of Adjusted Net Income and Adjusted Diluted EPS Three Months Ended Year Ended December 31, December 31, 2018 2017 2018 2017 Net Income $27.7 $23.6 $75.7 $89.7 Impairment charge on businesses subsequently divested -- -- 23.2 -- Tax impact (7.7) -- (8.9) -- Impact of the fair value mark