Arcosa, Inc.

Please stand by. Your program is about to begin. 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, SBP Finance and Treasurer for ARCOSA. Please go ahead.

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 yesterday's press release and the slide presentation for this morning's call are posted at our website, www.arcosa.com. 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 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.

Thank you, Gail. Good morning, and thank you for joining today's call to discuss our COSA'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 a broad portfolio of products and solutions. Please turn to slide four. 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 quarter-specific factors, such as wet weather on the negative side and increased throughput allowing for additional owners 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 in the press release, we are raising our 2019 adjusted EBITDA guidance 7% at the midpoint. In the second quarter, we completed two Bolton acquisitions that are aligned with our stated objectives, one in the aggregate business and one in the marine components business. Both transactions are good examples of what we're looking for. The acquisitions fit well into the existing portfolio. They bring immediate synergies while broadening our geographic footprint. They add complementary product lines. They reduce the overall cyclicality, and they were completed for an attractive price. While these two acquisitions were small, representing an aggregate cash consideration of roughly $23 million, our pipeline remains robust. We expect to complete one or more deals between now and the end of the year, taking advantage of the growth platform we can offer smaller producers of aggregates and specialty products. Importantly, we remain disciplined in our M&A approach. We will continue to look for small bolt-on acquisitions, but we'll also pursue larger opportunities when available at reasonable prices to advance our long-term strategy. Finally, we continue to work hard on ESG, which is top of mind for our COSA. We completed an important materiality assessment in the second quarter to identify the ESG topics that will be integrated into the long-term strategy. I will provide additional deep color on this at the end of the call. To sum up, we have been actively addressing the near-term strategic priorities that we have reiterated in all investor meetings, namely growing the construction products business, improving margins in energy equipment, and capitalizing on the cyclical recovery in our transportation group. Supporting those operational objectives have been our commitment to operate a lean, flat organization. Please turn to slide five. Here we have an overview of second quarter results. As I mentioned earlier, revenues increased 23% company-wide. We also benefit from margin improvement and operating leverage as evidenced by adjusted EBITDA growth of 38% and net income growth of 41%, both significantly outpacing revenue growth. I will now turn the call over to Scott Beasley, our CFO, to provide the second quarter financial review. Scott?