Arcosa, Inc. (NYSE: ACA) (“Arcosa”), a growth-oriented
manufacturer of infrastructure-related products and services, today
marks its first day as an independent public company following its
successful separation from Trinity Industries, Inc. The spin-off
was effected through a pro rata distribution of all outstanding
Arcosa shares to Trinity’s stockholders and is intended to qualify
as a tax free distribution for federal income tax purposes.
Regular-way trading on the New York Stock Exchange begins
today under the ACA ticker symbol
Arcosa President and CEO, Antonio Carrillo, commented, “Arcosa
is entering the public markets as a strong, independent company
with established businesses serving the construction, energy, and
transportation industries. A healthy, nearly-debt free balance
sheet and strong operating cash flow provide us with significant
resources to grow both organically and through disciplined
acquisitions.
“Our stage one priorities are to grow our construction products
businesses, improve margins in our energy equipment segment, and
expand our transportation products businesses as our key markets
recover. In particular, we expect the emerging barge recovery to
give us positive momentum moving into 2019.”
Mr. Carrillo concluded, “Finally, we are building a new company.
On this journey, we are committed to establishing credibility with
our many stakeholders, including the investment community, our
customers and suppliers, our team members throughout the
organization, and the communities in which we operate. We look
forward to keeping everyone informed of our progress.”
Reaffirms Fiscal Year 2019 Earnings Guidance
At its Investor Day on October 4, 2018, Arcosa established
financial guidance for the fiscal year ending December 31, 2019,
providing forecasted ranges for revenue and EBITDA. Today, Arcosa
is reaffirming its annual revenue guidance of between $1.55 and
$1.65 billion and its EBITDA guidance of between $180 and $195
million.
As discussed at Investor Day, the Company’s fiscal year 2019
guidance includes:
- Positives from 2018: Emerging barge
recovery positively impacting the Transportation Products segment;
margin improvement in the Energy Equipment segment; and continued
strength in the Construction Products segment
- Challenges from 2018: Between $10 and
$15 million of forecasted incremental standalone public company
costs and lower anticipated margins in the steel components
business due to lower 2019 contractual pricing
Refer to the supplemental table that accompanies this release
for a reconciliation of projected net income to EBITDA for
2019.
Executes $400 million unsecured five-year revolving credit
facility
In conjunction with its establishment as a standalone company,
Arcosa executed a $400 million unsecured credit facility with a
maturity date of November 2023. The facility is available for
general corporate purposes and includes customary terms and
conditions.
“With robust operating cash-flow generation and a strong balance
sheet, Arcosa is well-positioned to execute on our strategy to grow
in attractive markets where we can achieve sustainable competitive
advantages, reduce the complexity and cyclicality of the overall
business, and improve our return on invested capital,” stated Scott
Beasley, Arcosa’s CFO.
About Arcosa
Arcosa, Inc., headquartered in Dallas, Texas, is a
growth-oriented manufacturer of infrastructure-related products and
services with leading positions in construction, energy, and
transportation markets. Arcosa reports its financial results in
three principal business segments: the Construction Products Group,
the Energy Equipment Group, and the Transportation Products Group.
For more information, visit www.arcosa.com.
Some statements in this release, 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 estimates,
expectations, beliefs, intentions or strategies for the future.
Arcosa uses the words “anticipates,” “assumes,” “believes,”
“estimates,” “expects,” “intends,” “forecasts,” “may,” “will,”
“should,” “guidance,” “outlook,” and similar expressions to
identify these forward-looking statements. Forward-looking
statements speak only as of the date of this release, and Arcosa
expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statement contained
herein, except as required by federal securities laws.
Forward-looking statements are based on management’s current views
and assumptions and involve risks and uncertainties that could
cause actual results to differ materially from historical
experience or our present expectations, including but not limited
to assumptions, risks and uncertainties regarding achievement of
the expected benefits of Arcosa’s spin-off from Trinity; tax
treatment of the spin-off; market conditions and customer demand
for Arcosa’s business products and services; the cyclical nature
of, and seasonal or weather impact on, the industries in which
Arcosa competes; competition and other competitive factors;
governmental and regulatory factors; changing technologies;
availability of growth opportunities; market recovery; improving
margins; and Arcosa’s ability to execute its long-term strategy,
and such forward-looking statements are not guarantees of future
performance. For further discussion of such risks and
uncertainties, see “Information Statement Summary”, “Risk Factors”
and “Forward-Looking Statements” in the information statement filed
as an exhibit to Arcosa’s Registration Statement on Form 10, as
amended.
Arcosa, Inc.Reconciliation of Fiscal Year 2019 EBITDA
Guidance(in millions)(unaudited)
“EBITDA” is defined as net income plus interest expense, income
taxes, and depreciation and amortization. EBITDA is not a
calculation based on generally accepted accounting principles. The
amounts included in the EBITDA calculation, however, are derived
from amounts included in the historical statements of operations
data. In addition, EBITDA should not be considered as an
alternative to net income or operating income as an indicator of
our operating performance, or as an alternative to operating cash
flows as a measure of liquidity. We believe EBITDA assists
investors in comparing a company’s performance on a consistent
basis without regard to depreciation and amortization, which can
vary significantly depending upon many factors.
EBITDA Guidance
Fiscal Year ending
December 31, 2019
Low High Net income $ 81.0 $ 89.0 Add: Interest
expense 2.0 2.0 Provision for income taxes 27.0 29.0 Depreciation
and amortization expense 70.0 75.0 Earnings before
interest expense, income taxes, and depreciation and amortization
expense $ 180.0 $ 195.0
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version on businesswire.com: https://www.businesswire.com/news/home/20181101005133/en/
Arcosa, Inc.Scott C. Beasley, 972-942-6500Chief Financial
OfficerorGail M. Peck, 972-942-6500SVP, Finance &
TreasurerInvestorResources@arcosa.com
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