Arcosa, Inc.

Please stand by. Your program is about to begin. If you need audio assistance during today's program, please press star zero. Good morning, ladies and gentlemen, and welcome to Arcosa Inc. Arcosa Inc. First Quarter 2022 Earnings Conference Call. My name is Corliss, 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, Erin Draback, Director of Investor Relations for ARCOSA. Ms. Draback, you may begin.

Good morning, everyone, and thank you for joining ARCOSA's first quarter 2022 earnings call. With me today are Antonio Carrillo, President and CEO, and Gail Peck, 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 on our investor relations website, 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 GAAP. Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the appendix of the slide presentation. In addition, 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 for more information on these risks and uncertainties, including the press release we filed yesterday and our Form 10-Q we expect to be filed later today. I would now like to turn the call over to Antonio.

Thank you, Erin. Good morning, everyone, and thank you for joining today's call. Starting on slide four, I'll begin with some first quarter highlights. Led by our growth businesses, construction products, and engineer structures, our COSR delivered strong first quarter results with adjusted EBITDA growth of 30% outpacing revenue growth. Our results were driven by healthy infrastructure-led fundamentals and proactive pricing actions supported by solid operational performance. Additionally, we benefited from the contributions of recent acquisitions in construction products where integration is progressing well. During the quarter, we effectively managed the headwinds in our cyclical businesses, and I would like to commend our team for their continued dedication and execution in a challenging market environment. On a positive note, our barge business received $105 million in new orders during the first quarter, benefiting from our ability to secure competitive steel pricing. While these orders come at a lower than historical margin, we see the activity as a positive sign reflecting pent-up replacement demand for hopper barges and extend our backlog into 2023. Earlier in the week, we were pleased to announce that we reached a definitive agreement to divest our storage tank business for $275 million in cash, significantly advancing our strategy to simplify our portfolio of businesses. We continue to have an attractive pipeline of organic and acquisition opportunities with key focus on construction products and engineered structures. And the divestiture enables us to accelerate these opportunities. Overall demand conditions across our growth businesses remain strong, and we continue to see indications of recovery within our cyclical businesses. At the same time, we're focused on closely managing inflationary pressures. Global steel prices remain elevated and following the outbreak of the conflict in Ukraine, we now expect prices to remain elevated at least through the remainder of 2022. Even so, based on our strong start to the year, we're raising the midpoint of our 2022 full year adjusted EBITDA guidance and now expect annual growth in the range of 2 to 8%. Finally, I'm pleased to announce that ARCOSA recently published our second annual sustainability report, which is now available on our website. This report provides a comprehensive view of the many ways in which ARCOSA is incorporating ESG initiatives into our business and our vision for driving sustainable long-term growth. Turning to slide eight, I'd like to provide some additional highlights on our divestiture announcement before we move into quarterly results. The sale of our storage tank business is consistent with our strategy to reduce the complexity and cyclicality of our overall portfolio, and we intend to redeploy the proceeds into our key growth businesses. This investiture is an excellent example of improving a business and then preparing it for monetization when the market conditions are supported, enabling us to realize significant value through a competitive sale process. At SPIN, our storage tank business was underperforming, generating negative EBITDA in 2018. We set out to improve the profitability through lean initiatives and a strategy to accelerate growth. Beginning in late 2020, COVID deurbanization trends and a strong housing market led to significantly improved results for the business, with 2021 adjusted EBITDA pacing ahead of normalized levels. To capture future growth opportunities, we believe the business requires additional capital. making it an opportune time for new ownership. We anticipate the transaction should close in the second half of the year, and we will update our full year 2022 guidance at the time. Our pipeline of investment opportunities is robust and includes attractive acquisitions and organic initiatives that would not only strengthen our current product offerings, but also expand our geographic footprint. From an organic standpoint, we are making solid progress in our growth projects. including the expansion of our specialty materials plaster plant, as well as two new greenfield locations in natural aggregates. In addition, we are expanding our product line in the utility pole business, and earlier in the year, we started production of sprung concrete poles in Alabama. Given the successful launch of that line, we recently approved a new 30 million sprung concrete pole plant in Florida, which will start operations in 2023. The combination of these organic and inorganic opportunities, coupled with the additional capital coming from the divestiture of the tank business, should provide ARCOSA with multiple pathways to further strengthen our business and accelerate growth. Finally, on slide 9, ARCOSA has made significant progress since 2018, creating a less cyclical and more resilient company, with attractive infrastructure capitalists supporting long-term growth. The sale of our storage tank business enhances our capacity to continue expanding our focus growth areas. Gail will now provide detail on our financial results for the first quarter, and I will return to discuss an updated outlook. Gail?