<\/p>\n
Arcosa, Inc. Announces First Quarter 2023 Results<\/b><\/p>\n
\n\u2013 Record Quarterly Adjusted EBITDA Supported by Broad-Based Outperformance<\/p>\n
\n\u2013 Adjusted EBITDA Margin Expansion in all Three Segments<\/p>\n
\n\u2013 Positive Momentum in our Growth Businesses and Solid Execution and Improving Market Dynamics in our Cyclical Businesses<\/p>\n
\n\u2013 Full Year 2023 Adjusted EBITDA Guidance Range Increased to $345 Million to $370 Million, Reflecting Strong Start to Year and New Wind Tower Tax Credits<\/p>\n
DALLAS–(BUSINESS WIRE<\/a>)– \nOn October 3, 2022, the Company completed the divestiture of its storage tanks business. Financial results for the storage tanks business were included in the Engineered Structures segment as part of continuing operations to the date of sale. The tables below include additional financial information to facilitate the comparison to prior year’s results.<\/p>\n First Quarter Highlights<\/b><\/p>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n % Change<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n ($ in millions, except per share amounts)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRevenues<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 549.2<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n535.8<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nRevenues, excluding impact from divested business(1)<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 549.2<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n475.9<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n15<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 55.7<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n20.2<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n176<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted Net Income(2)<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 51.7<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n20.9<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n147<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nDiluted EPS<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 1.14<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.41<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n178<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted Diluted EPS(2)<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 1.06<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.42<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n152<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA(2)<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 108.1<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n73.4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n47<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA Margin(2)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 19.7<\/b><\/p>\n<\/td>\n %<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n13.7<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n600 bps<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA, excluding impact from divested business(1)(2)<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 108.1<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n61.4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n76<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA Margin, excluding impact from divested business(1)(2)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 19.7<\/b><\/p>\n<\/td>\n %<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n12.9<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n680 bps<\/p>\n<\/td>\n<\/tr>\n \nNet cash provided by operating activities<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 27.3<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n24.5<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nFree Cash Flow(2)<\/sup><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 6.8<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n19.2<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(65<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nbps – basis points<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n (1)<\/sup> Excludes the impact of the storage tanks business in the prior period.<\/p>\n<\/td>\n<\/tr>\n (2)<\/sup> Non-GAAP financial measure. See reconciliation tables included in this release.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nCommenting on the first quarter results, Antonio Carrillo, President and Chief Executive Officer, noted, \u201cDriven by strong contributions from each of our businesses, Arcosa generated record results in the first quarter. Adjusted EBITDA increased more than 45 percent, reflecting continued positive momentum in our growth businesses as well as solid execution and improving market dynamics in our cyclical businesses.<\/p>\n \n\u201cConstruction Products led our performance in the quarter, with Adjusted Segment EBITDA expanding by 85 percent. Strong pricing momentum contributed to healthy organic revenue growth and solid unit profitability gains, overcoming volume headwinds in our natural aggregates business. As anticipated, we completed the sale of depleted land in North Texas generating a $22 million gain in the quarter that will help fund replacement reserves. Excluding the gain, Adjusted Segment EBITDA margins expanded 360 basis points year-over-year.\u201d<\/p>\n \nCarrillo continued, \u201cWe are optimistic about the market recovery underway in our cyclical businesses. As previously announced, we received approximately $800 million in new wind tower orders during the quarter. Since the passage of the Inflation Reduction Act, we have received wind tower orders in excess of $1.1 billion that extend into 2028. While we continue to anticipate 2023 will be a transition year for our wind towers business as the industry supply chain ramps up, and we incur start-up expenses for our recently announced New Mexico facility, the stage is set for a multi-year recovery in 2024 and beyond.<\/p>\n \n\u201cWe are also encouraged by the $122 million of orders we received in our barge business, which represented a book to bill of 1.8 in the first quarter. Now at its highest level in three years, our backlog extends into 2024. Although elevated steel prices remain a demand headwind, we have been successful in converting inquires to new orders when we are able to source steel at competitive prices.<\/p>\n \n\u201cOur balance sheet and liquidity position are solid, and we continue to make progress on strategic capital allocation to advance our long-term growth. During the quarter, we invested $14 million in two small bolt-on acquisitions in Construction Products and $44 million in capital expenditures, largely to fund organic projects. We remain committed to disciplined investment, aligned with increasing our return on capital.\u201d<\/p>\n 2023 Outlook and Guidance<\/b><\/p>\n \nThe Company made the following adjustments to its full year 2023 guidance:<\/p>\n \nCommenting on the outlook, Carrillo concluded, \u201cDespite macroeconomic headwinds, Arcosa continues to generate strong financial performance, underscoring the resilience of our businesses and the unwavering dedication of our team. Looking forward, Arcosa remains well-positioned to execute on the numerous expansion opportunities we see across our portfolio, particularly in light of improving market fundamentals that point to a multi-year upcycle for our cyclical businesses. We will continue to manage our business with focus and discipline to drive growth and build long-term shareholder value.\u201d<\/p>\n First Quarter 2023 Results and Commentary<\/b><\/p>\n Construction Products<\/b><\/p>\n Engineered Structures<\/b><\/p>\n Transportation Products<\/b><\/p>\n Corporate and Other Financial Notes<\/b><\/p>\n Cash Flow and Liquidity<\/b><\/p>\n Non-GAAP Financial Information<\/b><\/p>\n \nThis earnings release contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (\u201cGAAP\u201d). Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the accompanying tables to this earnings release.<\/p>\n Conference Call Information<\/b><\/p>\n \nA conference call is scheduled for 8:30 a.m. Eastern Time on April 28, 2023 to discuss first quarter 2023 results. To listen to the conference call webcast, please visit the Investor Relations section of Arcosa\u2019s website at https:\/\/ir.arcosa.com<\/a>. A slide presentation for this conference call will be posted on the Company\u2019s website in advance of the call at https:\/\/ir.arcosa.com<\/a>. The audio conference call number is 800-343-1703 for domestic callers and 785-424-1116 for international callers. The conference ID is ARCOSA and the passcode is 59425. An audio playback will be available through 11:59 p.m. Eastern Time on May 12, 2023, by dialing 888-269-5330 for domestic callers and 402-220-7326 for international callers. A replay of the webcast will be available for one year on Arcosa\u2019s website at https:\/\/ir.arcosa.com\/news-events\/events-presentations<\/a>.<\/p>\n About Arcosa<\/b><\/p>\n
\nArcosa, Inc. (NYSE: ACA) (\u201cArcosa,\u201d the \u201cCompany,\u201d \u201cWe,\u201d or \u201cOur\u201d), a provider of infrastructure-related products and solutions, today announced results for the first quarter ended March 31, 2023.<\/p>\n\n
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