Arcosa, Inc (NYSE:ACA) Q3 2019 Earnings Conference Call - Final Transcript

Oct 31, 2019 • 08:30 am ET


Arcosa, Inc (NYSE:ACA) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning ladies and gentlemen and welcome to the Arcosa Inc. Third Quarter 2019 Earnings Conference Call. My name is Ashley and I will be your conference call operator today. [Operator Instructions]

Now I would like to turn the call over to your host Gail Peck. Ms. Peck you may begin.

Gail M. Peck

Good morning everyone. Thank you for joining our third 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 the 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 1 year on our website. Today's comments and presentation slides contains financial measures that have not been prepared in accordance with generally accepted accounting principles. reconciliations of non GAAP financial measures to the closest gap 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 third quarter results and business outlook. Once again we are pleased to report strong results. Demand trends remain positive across our infrastructure markets and our leadership positions in key products together with internal margin improvement programs are driving significant operating leverage. Please turn to slide four. Broadly our business has continued to perform well and we are successfully executing on the long-term strategy. This strong third quarter performance was led by margin improvement in the Energy Equipment business the revenue contribution from the ACG material acquisition and higher revenue on an earnings contribution from the barge business. It is important to mention that all the activity was strong in the third quarter in utility structures when towers and barges. One year-to-date -- our year-to-date results give us confidence that we will achieve the 2019 adjusted EBITDA guidance of $230 million to $240 million with the likelihood that we will be at the upper end of this range keeping in mind that we increased our -- this range when we reported first half results in August.

Tomorrow is the 1-year anniversary of Arcosa as an independent public company. We have come a long way since completing the spin-off last November standing up the organization and implementing our stage 1 priorities. Importantly as