Arcosa, Inc (NYSE:ACA) Q1 2019 Earnings Conference Call - Final Transcript

May 03, 2019 • 08:30 am ET


Arcosa, Inc (NYSE:ACA) Q1 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to Arcosa's First Quarter 2019 Earnings Conference Call. My name is Ashley, and I'll be your conference call coordinator today. As a reminder, today's call is being recorded.

Now I would like to turn the call over to your host, Gail Peck, Senior Vice President of Finance and Treasurer for Arcosa. Ms. Peck, you may begin.

Gail M. Peck

Thank you, Ashley. Good morning, everyone. Thank you for joining our first quarter 2019 earnings call. With me today are Antonio Carrillo, President and CEO; and Scott Beasley, CFO. A question-and-answer session will follow their prepared remarks.

A copy of yesterday's press release and a slide presentation for this morning's call are posted at our website, You can access the presentation by going to the Events tab under the Investors section of the website. A replay of today's call will be available for the next two weeks. Instructions for accessing the replay number are included in the press release. A replay of the webcast will be available for one year on our website.

Today's comments and presentation slides contain financial measures that have not been prepared in accordance with generally accepted accounting principles. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation. Let me also remind you that today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Please refer to the company's SEC filings, including its Form 10-K for more information on these risks and uncertainties.

I would now like to turn the call over to Antonio.

Antonio Carrillo

Thank you, Gail. Good morning, everyone. Thank you for participating in today's call to review Arcosa's first quarter results and discuss our business outlook. We are pleased with the way the quarter evolved and see this as a strong start to a year of strong growth for Arcosa.

As you know, our business model has been developed around three primary operating segments, each comprised of several product lines serving different end markets within the infrastructure sector. This gives us multiple platforms for growth as well as significant resilience to other specific events such as weather, shipment timing, maintenance slowdowns, et cetera, that can impact any of our business lines. Our first quarter performance benefit from having this broad exposure to infrastructure end markets as well as some successful organic projects and the addition of ACG Materials which we acquired in December last year.

Please move to Slide 4, where we list what we consider to be the key strategic highlights for the first quarter. First, our results exceeded our original expectations specifically on the Energy Equipment segment and provide a strong start to the year. Next, the ACG acquisition is performing to plan, integrating very well into our Construction Products segment and has brought with it potential bolt-on acquisitions that we are