Arcosa, Inc.

Good morning, ladies and gentlemen, and welcome to the ARCOSA Inc. Third Quarter 2022 Earnings Conference call. My name is Catherine, 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 Drabeck, Director of Investor Relations for ARCOSA. Ms. Drabeck, you may begin.

Good morning, everyone, and thank you for joining ARCOSA's third 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 expected 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 our third quarter highlights. Our COSA delivers strong results led by excellent performance in engineered structures that help drive an 11% increase in consolidated adjusted EBITDA. Favorable demand and pricing actions along with our continued efforts to improve operational efficiency and effectively managed costs in response to inflationary pressures contributed to strong earnings growth and improved cash flow. Engineer structures was a standout segment this quarter, generating double-digit revenue and segment-adjusted EBITDA growth that led to 360 basis points of margin expansion, primarily coming from improved pricing in our utility structures and storage tank business. Results in construction products reflected continued healthy construction activity and strong pricing gains to address inflationary pressures, although overall volumes in the quarter were impacted by a number of constraints that contributed to essentially flat segment adjusted EBITDA year over year. We're pleased to maintain segment margins consistent with the second quarter. Our transportation product segment performed in line with our expectations. EBITDA was down as growth in steel components was upset by lower profitability in March. Cash flow generation and strengthening our balance sheet flexibility continue to be top priorities, and we have made significant progress this year. Free cash flow conversion was 120 percent in the third quarter, a significant improvement from last year. We ended the quarter slightly below our long-term leverage target, and we further strengthened our balance sheet and liquidity position in October with the completion of the storage tank divestiture. Based on our strong year-to-date financial performance and taking the divestiture into account, we are updating our 2022 financial guidance. We now anticipate 15% adjusted EBITDA growth in the midpoint of our range, guidance range. Turning to slide eight, we have continued to advance our strategic transformation through focused M&A, organic growth initiatives, and the optimization of our assets. I am pleased with the progress we have made over the past few years to better position our portfolio for long-term growth. With a simplified and more focused portfolio serving higher growth markets, many of our businesses are well positioned to benefit from the multi-year tailwind provided by the nearly $1.4 trillion in expected spending from recently enacted federal legislations. Please turn to slide nine. The divestiture of the storage tank business for 275 million represented a significant milestone in our evolution toward a more simplified portfolio. The transaction also underscores our proven ability to improve non-strategic business and monetize it at a favorable point in time, realizing significant value for stakeholders. The divestiture expanded our balance sheet flexibility, enabling us to utilize a portion of the sale proceeds to repay our revolver while we focus on redeploying the capital into opportunistic Bolton acquisitions and organic growth initiatives. As we look forward, we remain focused on building a more aggregate-centric portfolio that maximizes our existing strength and capabilities while generating higher returns through the economic cycle. Now I will turn the call over to Gail to review the third quarter financial performance in more detail. Gail?