Arcosa, Inc.

Good morning, ladies and gentlemen, and welcome to ARCOSA Inc. Fourth Quarter 2020 Earnings Conference Call. My name is Gretchen, and I will 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, SVP, Finance and Treasurer for ARCOSA. Please, Ms. Peck, you may begin.

Good morning, everyone. Thank you for joining our fourth quarter and full year 2020 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 Investor Relations website, www.ir.arcosa.com. 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 under the News and Events tab. 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 that 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 for more information on these risks and uncertainties, including the earnings press release we filed yesterday and our Form 10-K, expected to be filed later today. I would now like to turn the call over to Antonio.

Thank you, Gail. Good morning, and thank you for joining us to discuss our COSAS fourth quarter and 2020 results and the outlook for 2021. Let me start with a few key messages on slide four. First and foremost, we managed effectively through very difficult business conditions in 2020 and succeeded in posting record revenue on EBITDA for the year, along with strong free cash flow generations. This performance underscores the resilience of our business model and the strength of our portfolio of products, which we continue to reposition around core infrastructure products. These results could not have been possible without the tremendous effort of the Arcosa team. The entire organization came together to enable us to stay operational throughout the worst days of the pandemic, while adhering to strict health and safety protocols. It is important to look back at the COVID case statistics across the country from October to January and to realize that the fourth quarter we operated in an environment that was with extremely high case counts and significant absenteeism due to quarantine protocols. There is no question that COVID-19 had an impact on our business, but we're getting through it together and we're able to continue to grow organically and via acquisitions despite the challenges of 2020. Second, we continue to make progress building a strong cash culture. Our 2020 free cash flow of $178 million marks another year of well over 100% conversion. Third, we took additional steps towards repositioning our COSA around more stable infrastructure products. We did this through continued organic investments and acquisitions in our key growth businesses. construction products and engineer structures. As a result, we added to our resiliency and our portfolio is significantly less cyclical than we were when we became an independent company in 2018. For 2021, we're planning for a modest decline in year-over-year EBITDA from our current portfolio of businesses, excluding any upside from potential acquisitions. The underlying assumptions are for continued strength in our construction products and engineer structure business, We also see lower wind tower deliveries and a slow year in barge business resulting from low utilization rates in liquid barges and high steel prices impacting dry cargo barges. We plan to continue to use our strong balance sheet to invest in organic growth initiatives and in acquisitions in our growth markets. At the same time, we're focused on managing our operating expenses and our capital expenditures, particularly in the businesses that are seeing pressure. Shifting to slide 9, you can see an overview of our fourth quarter results. Our EBITDA increased 6% outpacing revenue growth for the quarter. We benefit from higher margins at CHERRY and improvements in our legacy aggregates business. Please turn to slide 10. For the full year, we achieved another year of double-digit revenue and EBITDA growth while expanding margins. Our impressive 2020 performance was driven by accretive acquisitions and operational improvements in construction products and strong performance in our barge business. I will now turn over the call to Scott to discuss our segment performance, and then I will return to update you on our outlook for the business. Scott?