Arcosa, Inc (NYSE:ACA) Q2 2019 Earnings Conference Call - Final Transcript

Aug 02, 2019 • 08:30 am ET


Arcosa, Inc (NYSE:ACA) Q2 2019 Earnings Conference Call - Final Transcript


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

I would now like to turn the call over to your host, Gail Peck, SVP Finance and Treasurer for Arcosa. Please go ahead.

Gail M. Peck

Good morning, everyone. Thank you for joining our Second 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 the 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, and thank you for joining today's call to discuss Arcosa's second quarter results and our business outlook. We are pleased to report our strong second quarter and first half results, which exceeded our initial financial forecasts and have positioned us to raise our guidance for full-year 2019. The overall business climate has remained positive for our three business segments, which serve diversified end markets within the infrastructure sector. Our business model provides us with significant growth opportunities as well as the resiliency associated with our broad portfolio of products and solutions.

Please turn to Slide 4. We had a number of successes in the second quarter advancing on both our Stage 1 priorities and other key operational initiatives. First and foremost, we posted 38% adjusted EBITDA growth on a 23% revenue increase, with all three business segments contributing to this strong performance. While there were some core specific factors, such as wet weather on the negative side and increased throughput allowing for additional orders to be produced in Energy Equipment on the positive side, on balance our results reflected organic growth, the benefit of our December 2018 acquisition of ACG Materials and operating margin improvements in several key areas of the business. Based on first half results and our current visibility, as outlined