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Arcosa
🇺🇸 NYSE:ACA
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•
Dec 31, 2019

Arcosa Q4 2019 Earnings Report

Arcosa's Q4 2019 results demonstrated double-digit increases in revenues and adjusted EBITDA driven by organic and acquisition growth.

Key Takeaways

Arcosa reported a strong fourth quarter with a 19% increase in revenues to $446.9 million and a 17% increase in Adjusted EBITDA to $53.1 million. The company's performance was driven by growth in the Construction Products and Transportation Products segments, particularly in the barge business. They also provided 2020 guidance, expecting revenues and Adjusted EBITDA to increase 17% and 19%, respectively.

Revenues increased 19% to $446.9 million.

Net income was $21.1 million, with Diluted EPS of $0.43.

Adjusted EBITDA increased 17% to $53.1 million.

Operating cash flow was $139.8 million and free cash flow was $115.4 million.

Total Revenue
$447M
Previous year: $374M
+19.4%
EPS
$0.43
Previous year: $0.4
+7.5%
Wind/Utility Backlog
$597M
Inland Barges Backlog
$347M
Previous year: $231M
+50.5%
Gross Profit
$77.6M
Previous year: $63.5M
+22.2%
Cash and Equivalents
$240M
Previous year: $99.4M
+141.9%
Free Cash Flow
$115M
Previous year: -$11.8M
-1078.0%
Total Assets
$2.3B
Previous year: $2.17B
+6.0%

Arcosa

Arcosa

Arcosa Revenue by Segment

Forward Guidance

The Company expects full year 2020 revenues of $1.95 billion to $2.1 billion, which represents year-over-year growth of 17% at the midpoint. Adjusted EBITDA is expected to range from $275 million to $300 million, up 19% at the midpoint, with approximately 55% of Adjusted EBITDA expected to be generated in the second half of the year, due primarily to the anticipated delivery schedules for our barge and wind tower businesses.

Positive Outlook

  • Market conditions across our portfolio remain robust, with a few exceptions.
  • Backlog growth.
  • Strong inquiry levels.
  • Completion of the January 2020 acquisition of Cherry underpin our expectation for double-digit Adjusted EBITDA growth in 2020.
  • Positive demand for our construction products, barges, and utility structures.

Challenges Ahead

  • Headwinds in our rail components business.
  • Lower pricing in our wind towers business.
  • Approximately $15 million of barge revenues shifted into January 2020, causing fourth quarter revenues to be below the Company's expectations.
  • The year-over-year margin decrease primarily resulted from the addition of ACG Materials, which has lower margins than the legacy businesses.
  • Softer demand from ACG aggregates plants serving oil and gas markets, and higher than expected production costs at one of the Company's specialty materials plants.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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