Arcosa, Inc.

Good morning, ladies and gentlemen, and welcome to the ARCOSA Incorporated Second Quarter 2022 Earnings Conference Call. My name is Bobby, 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, CFO for ARCOSA. Ms. Peck, you may begin.

Good morning, everyone, and thank you for joining ARCOSA's Second Quarter Earnings Call. I am joined today by Antonio Carrillo, President and CEO. I'll begin with a few reminders and turn it over to Antonio. A question and answer session will follow our 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.barcosa.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 Security 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 releases filed yesterday and our Form 10-Q, expected to be filed later today. I would now like to turn the call over to Antonio.

Thank you, Gail. Good morning, everyone, and thank you for joining today's call. Starting on slide four, I'll begin with our second quarter highlights. ARCOSA reported excellent second quarter results, reflecting strong infrastructure-related fundamentals, proactive pricing actions, and significant operational efficiencies. All segments contributed to this quarter's results, led by our growth businesses within construction products and engineer structures. With each of our segments generating double-digit increases in revenue and adjusted EBITDA, we delivered record second quarter adjusted EBITDA and record adjusted EBITDA margins of 16.5%. I am proud of the dedicated team who once again executed at a high level, successfully navigating the challenging environment, managing inflationary pressures, and driving lean manufacturing efficiencies. We continue to advance our strategic transformation with the acquisition of Ramco, a leading provider of recycled aggregates in the Southern California market, while optimizing our portfolio with the pending divestiture of our storage tank business. Ramco is a great addition and complement to our construction products business, and I'll provide more details on this acquisition in a moment. We also continue to make progress on several large organic projects that should start producing positive EBITDA in 2023. Based on our stronger than expected first half of performance and our increasing confidence in the outlook for the second half, we're raising our full year revenue and adjusted EBITDA guidance. Turn to slide eight. We continue to make progress on our strategic transformation that is focused on reducing the complexity and cyclicality of our business. Over the past 18 months, we have completed three key acquisitions in construction products, extending our capabilities and expanding our geographic footprint into high-growth markets, including Arizona, Southern California, and Tennessee. At the same time, we have rationalized our portfolio with the pending divestiture of our storage tank business for $275 million, providing a significant source of capital to reinvest in growth initiatives. In particular, we continue to execute on several organic growth projects, which include the expansion of our specialty materials plaster plant in Oklahoma, and the construction of a concrete pole manufacturing plant in Florida to support our utility structure business. In addition, we will open two new aggregate greenfield sites in 2023, which will accelerate the growth in that business. Turning to slide nine, in May, we acquired Ramco, a leading independent producer of recycled aggregates serving the greater Los Angeles metropolitan area. Consistent with our disciplined approach to strategic M&A, we acquired this business for $75 million, representing an attractive implied valuation of less than eight times EBITDA. Ramco is a relatively small yet compelling strategic addition to our construction products business, complementing our existing footprint and customer base in the California market. Ramco has a unique business model. It charges customers a fee to receive construction materials for recycling, then crushes those materials and sells them as recycled aggregates. This combination of being able to charge both to receive and sell recycled aggregates makes Ramco a very profitable business. We're excited by the opportunities it brings to our coast. With a mid-year close, we estimate approximately $5 million of incremental adjusted EBITDA from Ramco in the second half, 2022. Now I will turn the call over to Gail to review our second quarter financial performance in more detail. Gail?